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Mexico Increases the General Minimum Wage

New Order or Decree

Authors: Mónica Schiaffino, Shareholder, and Valeria Cutipa – Littler

On December 1, 2021, the National Minimum Wage Commission (CONASAMI for its acronym in Spanish) agreed to increase Mexico’s general minimum wage to $172.87 Mexican pesos per day, and $260.34 Mexican pesos per day in the Free Economic Zone of the Northern Border, effective January 1, 2022. According to CONASAMI's press release, $16.90 Mexican pesos were added to the current minimum wage through the so-called Independent Recovery Amount (MIR) and an increase of 9% was applied. Therefore, the minimum wage in force for 2022 implies a global increase of 22%.

Employers should review and adjust their payroll practices to comply with this new increase to the minimum wage, which may also potentially impact benefits like savings funds and food coupons depending on how these benefits have been agreed to with employees and unions. This increase was published in the Official Gazette of the Federation on December 8, 2021.