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.
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.”