How Much is the Minimum Wage in Mexico for 2024?

This positioning places the country in fourth place among Latin American countries, according to Statista, demonstrating its position in America’s economic context.

Thanks to the approval of the National Commission for Minimum Wages (CONASAMI), the minimum wage in Mexico has already accumulated an increase of 110% between 2018 and 2024. This figure reflects a government effort to improve the economic conditions of employees throughout Mexico, including Mexico City. 

What is the Minimum Wage or Salary?

According to Article 90 of the Federal Labor Law, the minimum wage in Mexico represents the minimum amount that an employer can legally pay an employee for his or her services.

This article establishes that “the minimum wage must be sufficient to satisfy the normal needs of a head of family in the material, social and cultural order, and to provide for the compulsory education of children.”

It is worth mentioning that there are several types of minimum wage, which are: 

• General minimum wage: This is the lowest amount that an employer can legally pay a worker for his or her services in most regions of the country. This figure guarantees a minimum standard of income for employees and promotes the protection of their labor rights.
• Professional minimum wage: This wage applies to certain special jobs, where the required skills and abilities are particularly in demand in a specific industry.
• Minimum wage in the Northern Border Free Trade Zone (ZLFN): This geographic area includes municipalities on the border with the United States and has a minimum wage different from that of the rest of the country. Its objective is to adjust to the economic particularities of this area. 

Who Determines the Value of the Minimum Wage in Mexico?

The different institutions and entities involved in this decision are: 

• The Council of Representatives of the National Commission: made up of representatives of the labor, employer and government sectors. Its main task is to propose and discuss adjustments to the minimum wage, taking into account the economic and social conditions of the country.
• The National Council for the Evaluation of Social Development Policy (CONEVAL): does not directly decide on setting the minimum wage, but it plays a very important role, since it evaluates the sufficiency of said wage in relation to the basic needs of the population.
• The National Commission on Minimum Wages (CONASAMI) sets the country’s general and professional minimum wages, based on the recommendations of the aforementioned councils. Its objective is to balance the interests of workers and employers. 

How Does the Increase in the Minimum Wage Impact?

The increase in the minimum wage reflects the value of work in Mexico and influences the economy and quality of life of many people. However, it also has a significant impact in more dimensions:  

• Social Security: The Mexican Social Security Institute (IMSS) adjusts contributions and benefits in accordance with salary increases. In this way, greater social protection is guaranteed for the workforce. 
• Employee well-being: higher wages translate into increased purchasing power for employees. This allows them to cover their basic needs more effectively, improving their quality of life. 
• Poverty reduction: According to Coneval, 5.1 million people were lifted out of poverty thanks to salary increases between 2018 and 2022. This translates into a significant reduction in poverty in the country.
• Labor aspect: The establishment of the Independent Recovery Amount (MIR) guarantees fair and safe working conditions for all workers. This promotes a fairer and more dignified work environment for all workers. 

What is the Independent Recovery Amount (MIR)?

The MIR is a nominal salary increase implemented in 2017, with the intention of recovering the purchasing power of minimum wages. 

The MIR should not be used as a reference to set other current salaries such as contractual, federal, state or municipal salaries and should be added to the current minimum wage. This year, the amount is 41.26 pesos for the Northern Border Free Zone (ZLFN) and 27.40 pesos for the rest of the country, with an increase of 6%.

Minimum wages are just a fixed base, which companies can always exceed to ensure fair and competitive remuneration. a leading employee benefits platform, you can give your employees the best to boost their productivity.