Mexico Increases the General Minimum Wage

On December 16, 2019, the National Minimum Wage Commission (“CONASAMI” for its acronym in Spanish) announced that the minimum wage would increase to $123.22 Mexican pesos per day, effective January 1, 2020. The new minimum wage was determined by adding $14.67 Mexican pesos through the so-called Independent Recovery Amount and applying a 5% percentage increase. The minimum wage that will apply in 2020 will therefore constitute a general 20% increase over the rate used in 2019.

The CONASAMI also agreed to increase the minimum wage for workers in the Free Economic Zone of the Northern Border to $185.56 Mexican pesos, effective January 1, 2020, representing a 5% increase.

As a reminder, the municipalities included in the Free Economic Zone of the Northern Border are: (i) Baja California Norte: Ensenada, Playas de Rosarito, Tijuana, Tecate and Mexicali; (ii) Sonora: San Luis Rio Colorado, Puerto Peñasco, General Plutarco Elias Calles, Caborca, Altar, Saric, Nogales, Santa Cruz, Cananea, Naco and Agua Prieta; (iii) Chihuahua: Janos, Ascension, Juarez, Praxedis G. Guerrero, Guadalupe, Coyame del Sotol, Ojinagua and Manuel Benavides; (iv) Coahuila: Ocampo, Acuña, Zaragoza, Jimenez, Piedras Negras, Nava, Guerrero and Hidalgo; (v) Nuevo Leon: Anahuac; and (vi) Tamaulipas: Nuevo Laredo, Guerrero, Mier, Miguel Aleman, Camargo, Gustavo Diaz Ordaz, Reynosa, Río Bravo, Valle Hermoso and Matamoros.

Employers should review and adjust their payroll practices to comply with this new increase to the minimum wage.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.