Mexico's Minimum Wage Increases Come Into Effect

As of Jan. 1, the updated minimum wage has come into effect, amounting to approximately MX$8,475 per month. The adjustment aims to provide workers with a fair and dignified standard of living. Still, a bigger adjustment is necessary to ensure dignified conditions, say experts.

In 2025, the minimum wage increased by 12% annually, reaching MX$278.80 per day. This represents a cumulative rise of 135% since 2018, when it stood at MX$88.40. In addition, wages for 61 trades and professions included in the professional minimum wage table will also increase by 12%, ranging from MX$283.47 to MX$624.30 per day.

Annual increases to the minimum wage were initiated under the previous administration. President Sheinbaum has committed to maintaining this policy, targeting a minimum wage capable of covering the cost of 2.5 basic baskets by the end of her term, requiring annual increases of at least 12%.

In the Northern Border Free Zone (ZLFN), the minimum monthly wage has been set at MX$12,764, marking the highest remuneration level recorded in this region. The National Minimum Wage Commission (CONASAMI) established a daily minimum wage in the ZLFN at MX$419.88, reflecting a 12% adjustment. "The general minimum wage increase includes the 2024 baseline rate, an Independent Recovery Amount (MIR) of MX$19.36 for the ZLFN, MX$12.85 for the General Minimum Wage Zone, and a 6.5% adjustment," CONASAMI stated.

The OCDE, Mexico’s wage recovery policy has positioned it as the OECD member state with the highest growth in minimum wages, at 6.7 times the average growth rate among member countries. 

Citizen Action Against Poverty (ACFP) recognizes the positive impact of recent minimum wage increases on labor income but asserts that these measures remain insufficient to secure dignified wages. "Even among formal private-sector employees, over one-third earn less than the poverty threshold, and more than half earn below the benchmark for a living wage of MX$12,500 per month," ACFP stated.

ACFP also emphasizes that a living wage must be sufficient to cover at least two basic baskets. Workers earning below this threshold are considered to live in poverty, unable to sustain themselves and one additional person above the poverty line. In 2024, over 30 million individuals were identified as living under these conditions in Mexico.