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Increasing the minimum wage by roughly 45 pesos is necessary to fight poverty, one expert says. Increasing the minimum wage by roughly 45 pesos is necessary to fight poverty, one expert says.

Anti-poverty organization urges 30% hike in minimum wage

The National Minimum Wage Commission will announce its decision by the end of the year

The minimum wage should increase by 30% in 2022, says an anti-poverty organization that has been critical of the federal government’s efforts to combat poverty.

Acción Ciudadana Frente a la Pobreza (Citizen Action Against Poverty) submitted a formal proposal to the National Minimum Wage Commission (Conasami) for the daily wage to rise to 185.2 pesos (US $8.60) from its current level of 141.7 pesos.

Members of the Conasami council were due to begin discussing next year’s hike on Thursday. The minimum wage, one of the lowest in the Americas, was raised 15% at the start of this year.

Acción Ciudadana coordinator Rogelio Gómez Hermosillo said an increase of about 45 pesos to the minimum wage is essential to combat poverty, which has increased during the coronavirus pandemic.

He said it’s “proven” that an increase of the size ACFP is proposing won’t have any negative effects on the economy.

“Don’t be fooled or confused, it’s not a generalized salary increase,” Gómez said. “It’s already clear that an adjustment to the minimum wage in Mexico doesn’t have any effect on macroeconomic variables such as inflation but it is significant in terms of reducing working poverty.”

ACFP said in a statement that 61% of people with a fixed salary don’t earn enough to rise above the poverty threshold. The working poor consists of 19.3 million Mexicans, it said.

For work to be “a dignified way out of poverty,” the first step is to increase the minimum wage, ACFP said.

Conasami must announce an increase to the daily minimum wage by December 31. The new rate will take effect January 1.

With reports from Reforma 

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