Wednesday, November 29, 2023

Minimum wage commission considers increase to 127 pesos per day

The federal minimum wage commission is considering raising the basic wage to as high as 127 pesos (US $6.61) per day in 2020, a 23% increase over the current wage of 102.68 pesos.

A member of the Conasami council told the newspaper Milenio it is planning on the new wage being at least 117 pesos (US $6.09) per day.

“We had talked previously about a base of 117 pesos, so it’s probable that it will be more,” Enrique Octavio García Méndez said. “We are waiting for the latest information from the Bank of México and the treasury office . . .” he said.

Sources close to Conasami said the council is in permanent session and it was possible it will propose a range of minimum wages as early as Friday.

The Mexican Employers Federation (Coparmex) has proposed a wage between 117.72 and 127.76 pesos, with a long-range target of 205.41 by 2024.

The Confederation of Mexican Workers (CTM) has a more ambitious target for this year — 132 pesos.

“We’re in a total recession and we see no growth, and it’s going to be very difficult for workers in 2020, that’s why we’re hoping this raise goes through . . .” said Roberto Palacios Pérez, head of the CTM chapter of Irapuato, Guanajuato.

When asked about such a wage hike, Conasami’s García said it would be too high.

The current minimum wage in most of Mexico is 102.68 pesos a day. In the northern border area it is 176.72 pesos.

The wage is set at the beginning of each year and has historically been kept low for fear of stoking inflation.

In January, the wage went up 16% and for the first time in many years represented an amount that would provide the average family with the minimum for remaining above the poverty line, as set by the social development agency, Coneval.

Sources: Milenio (sp), El Sol de León (sp)

Have something to say? Paid Subscribers get all access to make & read comments.

Krispy Kreme donuts

Got 1 min? Police seize suspicious Krispy Kreme doughnuts

The hardest part of the police operation in Puebla may have been resisting the temptation to eat the evidence.

OECD improves economic growth forecast for Mexico this year

The organization slightly increased their GDP growth prediction for the country for 2023, citing a strong labor market and increased investments.

Over 400 companies looking to invest in manufacturing in Mexico

This figure was cited by the president of an industrial park association and developer, who described nearshoring as a "unique opportunity" for Mexico.