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.
On December 1, 2022, the National Minimum Wage Commission (“CONASAMI” for its acronym in Spanish) agreed to increase Mexico’s general minimum wage to $207.44 Mexican pesos per day, and to $312.41 Mexican pesos per day in the Free Economic Zone of the Northern Border, effective January 1, 2023. The minimum wage in force for 2023 will result in an overall increase of 20% (10% as direct increase and $15.72 Mexican pesos as a fixed amount increase).
As a reminder, the municipalities included in the Free Economic Zone of the Northern Border are: (i) Baja California: 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, Ojinaga 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, which may potentially also impact benefits likes savings fund and food coupons depending on how these benefits have been agreed upon with employees and unions.