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Historic 20% Increase in Mexico’s Minimum Wage for 2024

Mexico City – The Council of Representatives of the National Minimum Wage Commission (Conasami) on Friday unanimously agreed to a 20% increase in the general minimum wage, bringing it to 249 pesos per day by January 1, 2024. This decision was reached during the first minutes of December 1, coinciding with President Andrés Manuel López Obrador’s fifth anniversary in office.

President López Obrador, speaking from the National Palace, emphasized the significance of this wage boost. “When we arrived, the minimum wage was 88 pesos per day, 2,687 pesos per month, and as of January 1 (2024), the minimum wage will be 249 pesos per day, 7,508 pesos per month,” he announced.

Along the northern border, the increase is even more substantial, jumping from 88 pesos in 2018 to 375 pesos per day in 2024 – a monthly increase from 2,687 pesos to 11,403 pesos. The president deemed this move as “historic,” citing a change unprecedented in the past 50 years.

This unanimous decision by Conasami councilors came after intense negotiations involving entrepreneurs, unions, and the federal government. While falling short of the unions’ call for a 25% increase, it surpassed the 12.8% proposed by the Employers’ Confederation of the Mexican Republic (Coparmex).

AMLO expressed satisfaction with the collaborative approach, stating, “I had six agreements for salary increases, and on five occasions, considering today, it was reached by consensus. Only in one year did the business sector not participate.”

The announcement comes against the backdrop of a slowing inflation trend in Mexico in 2023. From 7.9% in January, inflation dropped to 4.2% by October, according to Inegi. Bank of Mexico (Banxico) forecasts predict an average inflation rate of 4.4% in the fourth quarter of 2023, with expectations of a further decrease to 3.4% by the last quarter of 2024.

In response to the increase, President López Obrador announced plans to invite representatives from the labor and private sectors to the National Palace to explain the decision, highlighting the collaborative approach taken in achieving consensus throughout his term.

This historic wage adjustment is a testament to the ongoing efforts to improve the economic well-being of Mexico’s workforce, as the nation continues to navigate economic challenges and work towards a more equitable future.

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MXN - Mexican Peso