mexican coins The minimum wage will go up 10% on December 1.

Minimum wage will increase by 8 pesos

The hike is half what would be required for it to reach the poverty line

The daily minimum wage will rise by eight pesos December 1, an increase that falls short of the 15-peso hike sought by Mexico’s largest business lobby and what the country’s social development agency says is needed to reach the poverty line.

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The National Minimum Wage Commission today announced a 10% increase from 80.04 pesos to 88.36, about half of what the Mexican Employers Federation, or Coparmex, has been calling for.

It also falls short of what Coneval, a federal agency that measures poverty levels, says is required to reach parity with its threshold for well-being, which it has set at 95.24 pesos.

Coparmex chief Gustavo de Hoyos Walther described the increase on Twitter as “a limited step” that failed to reach the poverty line. “We remain indebted to millions of Mexicans,” he said.

Fears of stoking inflation have kept Mexico’s minimum wage low for many years, and continue to do so. Outgoing central bank governor Agustín Carstens called 10 days ago for prudence in adjustments to the wage.

“Although the Bank of México is in support of better minimum wages, the recommendation is that the process be conducted with much prudence, in such a way that it doesn’t turn around and stimulate inflation.”

Source: El Universal (sp), Milenio (sp)

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  • Güerito

    It’s too easy to criticize this pathetic increase which will leave the minimum salary in Mexico still among the lowest even in Latin America.

    But it’s not that well know that Mexico leads Latin America in labor productivity, tied with Chile which has a minimum wage more than three times higher than Mexico. Most countries in Latin America have much higher minimum wages with much lower worker productivity than Mexico.

    An injustice to Mexican workers and an embarrassment for the country as a whole.

    http://www.elfinanciero.com.mx/opinion/se-me-olvido-que-te-olvide-productividad-y-salario-minimo-en-mexico.html

  • DreadFool

    oh good and now raise the retirement age to 79

  • Sharon

    In fact the more disposable income people have – the lower the rate of inflation. Seems like the government wants to keep the people poor and desperate so that they can control them. Let’s find out how much of in increase in pay the politicians got this year. Shame on the government for making it so that people can barely survive here. With the increased cost of gasoline, which caused everything else to go up, it is a struggle for many people just to get to work, if they can get a job. Employers sometimes cut employees when they have to pay more – that should not happen.

    • naksuthin

      The thinking of the Mexican government goes like this
      If we keep the minimum wage low…the poor will have to cross the border into the United States to survive.
      Then they start sending billions of dollars back into Mexico in the form of remittance so their poor relatives can survive.o
      Result…remittances have become one of Mexicos major imports and illegal aliens one of Mexicos biggest exports

  • naksuthin

    So sad. While the wealthy in Mexico enjoy cheap labor..maids, chauffeurs, gardeners, butlers…the laborers who do the work live in poverty
    Meanwhile Prices charged by businesses that sell to the poor…and rents the poor have to pay for housing…continue to rise

    That’s why so Many of Mexico’s poor have to cross the border illegally into the US for a better life

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