14 | OCT | 2019
Mexico to increase minimum wage by 16%
Minimum wage will increase in Mexico - Photo: Jose Luis Gonzalez/REUTERS

Mexico to increase minimum wage by 16%

18/12/2018
13:13
Newsroom & Agencies
Mexico City
Alberto Morales, Astrid Rivera, Sheky Espejo, Sharay Angulo, Michael O'Boyle
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President López Obrador's administration, business sector, and the workers have agreed on a new wage policy

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President Andrés Manuel López Obrador's administration, business sector, and the workers have agreed on a new wage policy, which proposed a 16% salary increase, starting on January 1, 2019.

Therefore, the minimum wage will go from MXN $80.36 to MXN $102.6 and MXN $176.7 in the northern border.

The 16.2% increase is the highest one in the last 23 years.

“For many years the minimum wage has lost its purchasing power. Some say it has lost 70% of its purchasing power over the last 30 years,” said López Obrador.

“We’re never going to have wage (increases) below inflation,” he pledged at an event with the wage commission, made up of government, business and labor representatives.

During the event, the President praised the agreement reached between all sectors because, he said, it will help the economy and benefit everyone. He thanked the business sector because it was a “key element” to reach this agreement.

“The first proposal to increase the minimum wage was made by the Coparmex. We were asked to sign an agreement during the presidential campaign and the candidates made a deal. Something exceptional, worthy of recognition,” he emphasized.

During his daily press conference, López Obrador said that the salary increase was the result of a conciliation between the workers, companies, and the Bank of Mexico.

The President explained that with this measure consumption will increase because it will improve the workers' income; nevertheless, he said that his administration will always act carefully in regards to wages.

The Labor Minister, María Alcalde, said that the consensus reached between the government, companies, and workers place minimum wage on a progressive and sustainable path towards recovery.

She claimed that for the first time in many years, it's been possible to establish the minimum wage on the same level as the individual well-being line, but this is not enough, the challenge is to go from a minimum wage to a living wage during this presidency.

The Economy Minister, Graciela Márquez Colín, explained that the increase of the minimum wage looks to offer better living conditions for many people who, otherwise, would migrate.

She said that the salary increase in the northern border will be an element that will decisively contribute to the strengthening of the domestic market in the border.
 

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Ideal daily minimum wage in Mexico: MXN$353, according to study

In order to overcome poverty in the country, daily minimum wage in Mexico should be MXN$353, according to a study by the Iberoamericana University
 Ideal daily minimum wage in Mexico: MXN$353, according to study Ideal daily minimum wage in Mexico: MXN$353, according to study

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