CONASAMI Opens 2026 Minimum Wage Review Process

The National Minimum Wage Commission (CONASAMI) has begun the formal process to determine Mexico’s minimum wage levels for 2026, following the final Ordinary Session of its Council of Representatives and its subsequent shift into Permanent Session. The move signals the start of deliberations among government, labor, and employer representatives, who will review proposals submitted by each sector before reaching an agreement to take effect on Jan. 1, 2026.

During the session, CONASAMI’s Technical Directorate presented its Annual Report on Economic Performance. The document analyzes changes in the cost of living, labor market conditions, wage structures, and other economic indicators. These elements will guide the upcoming discussions on the size of the increase, which will be led by Luis Felipe Munguía, President, CONASAMI.

The review occurs amid ongoing wage policy efforts introduced in recent administrations. According to CONASAMI, the minimum wage’s purchasing power increased 129.4% between December 2018 and October 2024, rising from MX$88.36 (US$4.82)  to MX$278.80 (US$15.22) per day. Officials have noted that wage-setting mechanisms continue to rely on dialogue among sector representatives to ensure that adjustments reflect economic and social considerations.

President Claudia Sheinbaum has indicated that the government aims for the minimum wage to reach 2.5 times the Urban Income Poverty Line by 2030. The target will require continued coordination within the Council of Representatives as it evaluates proposals and economic data over the coming years. The 2026 negotiation marks the next step in this long-term wage strategy.

The discussion arrives as the administration continues to frame wage policy as a lever to strengthen domestic consumption, reports MBN. Sheinbaum states that although the wage has reached levels not seen in decades, many families rely on a single income and still face challenges in covering basic needs. By law, the annual adjustment must exceed inflation, which stood at 3.57% in October.

The negotiation takes place in a broader economic environment marked by cautious business sentiment. According to Michael Page’s Salary Guide 2026, only 62% of companies in Mexico plan to increase salaries next year, and most expect to raise them by only 1% to 5%. Oliver Odreman, Senior Director, Michael Page, described this as “a very moderate expectation,” reflecting an outlook shaped more by inflation stabilization than by confidence in stronger economic growth.

Inflation is expected to close at 3.82% in 2025 and 3.92% in 2026, according to Citi’s latest survey. AON’s separate analysis projects raises of 5.4% for non-unionized workers and 6.4% for unionized employees, though regional variations remain. Employers cite uncertainty linked to global trade conditions, new US tariffs under the Trump administration, supply chain adjustments, and pending domestic labor reforms, such as the possible reduction of the workweek from 48 to 40 hours.

In the labor market, limited salary growth is affecting retention strategies. Michael Page reports that 95% of employees value workplace flexibility, yet only 9% of companies offer structured programs. However, compensation strategies are evolving. “Salary alone has ceased to be a differentiating factor. Today, talent expects a more complete value proposition,” says Javier Torre, Director General for Mexico and Central America, Michael Page. Companies are expanding differentiated benefits, though gaps remain between employee expectations and what employers provide.

The negotiation for the 2026 minimum wage is taking place amid competing pressures: government goals for continued wage recovery, employers’ concerns over economic uncertainty, record foreign investment, and shifting employee priorities. The council’s decision, expected in early December, will shape wage policy for the coming year and influence how companies adjust compensation in a changing labor market.