Sheinbaum Anticipates a 12% Increase in Minimum Wage for 2025
09:22 03/10/2024 - PesoMXN.com
The Mexican leader, Claudia Sheinbaum, announced last Thursday that a minimum wage increase of approximately 12% is expected for next year.
If this increase takes place, the new minimum wage would significantly surpass the current inflation rate of 4.6%. During the previous administration, the minimum wage rose from 88 pesos in 2018 to 248 pesos in most parts of the country and 374 pesos per day in the northern border this year. In her presidential campaign, Claudia Sheinbaum pledged that the wage would continue to rise until it reaches the equivalent needed to afford 2.5 basic daily baskets, which would imply a nominal increase of 11% in the coming years. The president has indicated that efforts will be made to ensure the minimum wage gradually represents 2.5 basic baskets, compared to the current 1.6, following several adjustments made in the previous government. “That would mean an increase of around 12% for next year and so on each year,” she stated during her morning press conference this Thursday.
The proposed increase in the minimum wage is a positive step that could benefit millions of workers in Mexico. However, it is crucial that this increase is accompanied by policies that stimulate economic growth and control inflation so that it genuinely translates into an improvement in citizens' purchasing power. The sustainability of these increases will also depend on the government's ability to maintain a stable and attractive economic environment for investment.
