Minimum Wage Forecast for 2025 in Mexico: Expected Increase
Workers in Mexico are keeping an eye on the possible increase in the minimum wage in 2025, with an announcement expected in the coming weeks. However, President Claudia Sheinbaum Pardo has already shared her views on the matter. Here are the details.
What has the President communicated? What would the new minimum wage be in 2025?In her press conference on October 3, the head of government addressed the minimum wage issue, recalling her ambition to reach 2.5 basic baskets by the end of her term, which would imply an annual increase in the minimum wage of around 12%. "We need to engage in dialogue with business leaders and labor representatives. Our goal is for the minimum wage to reach 2.5 basic baskets, which is currently at 1.6. We are working with economists to ensure that this does not negatively impact inflation. This would mean an increase of approximately 12% for next year, and so on each year," Sheinbaum stated. The National Commission on Minimum Wages (Conasami) is the body responsible for announcing the increase for the minimum wage in 2025. However, the declaration of constitutionality has yet to be made. On October 9, the Senate approved, with 124 votes in favor, the reform of Article 123 of the Constitution to ensure that minimum wages—both general and professional—do not fall below inflation. This reform is part of the 20 proposals presented by Andrés Manuel López Obrador during his presidency. Currently, the minimum wage is 248.93 pesos per day and 374.89 pesos in the Free Zone of the Northern Border, which means a 12% increase would result in an increase of 29.87 pesos and 44.98 pesos, respectively. If published in the Official Gazette of the Federation (DOF), the minimum wage for next year would be 278.80 pesos per day, and in the Free Zone of the Northern Border, it would be set at 419.87 pesos per day. However, this increase requires approval from both business and labor representatives.
The increase in the minimum wage is a crucial issue in the Mexican economy, as it aims not only to improve workers' quality of life but also to ensure that their incomes maintain consistent purchasing power against inflation. It is important that this measure is implemented with a focus on the financial health of small and medium-sized businesses to avoid adverse impacts on employment and the economy as a whole.
