National minimum wage in detail
From 1 January 2018, the single minimum general daily wage throughout Mexico became MXN 102.68 (EUR 4.68) per day. Also, a daily minimum wage applicable in cities located in a strip of 25 kilometers from the Mexico-US border was approved and set at MXN 176.72 (EUR 8.05). This is the first time that a minimum general daily wage has been set at a higher rate for border cities in Mexico. Federal Labour Law provides that the Minimum Wage National Committee should meet once a year at the end of each year to set the minimum daily wage for the next year. This means that the minimum wage in Mexico changes annually and the new minimum wage enters into force on the first day of each year. Mexican law further provides that the minimum wage must be sufficient to meet the normal basic material, social and cultural needs of a family, and provide for the compulsory educational needs of the children. The minimum wage is not automatically adjusted in line with inflation as the Committee’s decision is guided by research data, which may include inflation, exchange rates and the cost of living in different regions of the country.
Author: Basham, Ringe y Correa S.C.
Date: March 2019
Note: For specific advice on any particular issue, please consult the relevant firm. The law is stated as at March 2019.