Mexico Increases the Minimum Wage

On December 1, 2023, the National Minimum Wage Commission (“CONASAMI” for its acronym in Spanish) agreed to increase the general minimum wage to $248.93 pesos per day and $374.89 pesos per day in the Free Economic Zone of the Northern Border, effective January 1, 2024. This represents a 20% increase in both zones.

The municipalities included in the Free Economic Zone of the Northern Border are: a) Baja California: Ensenada, Mexicali, Playas de Rosarito, Tecate and Tijuana, b) Sonora: Agua Prieta, Aitar, Caborca, Cananea, General Plutarco Elías Calles, Naco, Nogales, Puerto Peñasco, San Luis Río Colorado, Santa Cruz and Sáric, c) Chihuahua: Ascension, Coyame del Sotol, Guadalupe, Janos, Juárez, Manuel Benavides, Ojinaga and Praxedis G. Guerrero, d) Coahuila: Acuña, Guerrero, Hidalgo, Jiménez, Nava, Ocampo, Piedras Negras and Zaragoza, e) Nuevo León: Anahuac, and f) Tamaulipas: Camargo, Guerrero, Gustavo Díaz Ordaz, Matamoros, Mier, Miguel Aleman, Nuevo Laredo, Reynosa, Río Bravo and Valle Hermoso.

Companies must review and adjust their payroll practices to comply with this new minimum wage increase, which could also affect benefits such as the savings fund and food coupons depending on how these benefits have been agreed upon with employees and unions.

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.