Mexican Unions Push 30% Minimum Wage Increase for 2026

Mexican unions are pushing for a 30.6% increase to the country’s minimum wage for 2026, aiming to restore the purchasing power last seen in 1976, according to José Luis Carazo, Spokesperson, Confederation of Mexican Workers (CTM). The proposal will be presented during the upcoming tripartite negotiations convened by the National Minimum Wage Commission (CONASAMI) on Nov. 27.

“The request is for a 30.6% increase to both general and professional minimum wages. After 50 years, it is fair for current and future generations to have a wage in line with the Constitution,” said Carazo. He represents 24 organizations that agreed on the proposal last week.

If approved, the general minimum wage would rise from MX$278.80 (US$15.17) per day to MX$362.34 (US$19.69), or about MX$11,017 (US$599) per month. The northern border minimum wage would increase from MX$419.88 (US$22.85) to MX$545.84 (US$29.67) per day, or MX$16,593 (US$901) per month. The proposal exceeds both the 12% increase approved for 2025 and most private-sector estimates, including Banamex’s forecast of 11% and Acción Ciudadana Frente a la Pobreza’s recommendation of 16% for the general wage and 4% for the border.

Unions stress that the increase is sustainable and necessary to avoid suppressing incomes. As El Economista cites, Carazo argued that low wages have been the main driver of competitiveness in Mexico, but the country could focus on improving infrastructure, access to finance, lower interest rates, simplified procedures, and anti-piracy enforcement instead. He warned that equal wages across regions could reduce motivation for workers to improve skills or productivity.

The negotiations come as CONASAMI prepares its annual technical report on the national economy, expected by the end of November. The Council of Representatives will review proposals from unions, employers, and society to finalize minimum wages for 2026 in December. By law, increases must exceed inflation, which stood at 3.57% in October.

President Claudia Sheinbaum has endorsed a consensus-driven process for wage-setting. “It will be done by consensus, and we always aim for it to be as high as possible because Mexico has benefited greatly from raising the minimum wage,” she said. The administration’s long-term target is for the minimum wage to reach 2.5 times the cost of the basic basket by 2030.

The push for a 30% increase occurs amid mixed signals from employers. According to Michael Page’s Salary Guide 2026, only 62% of companies plan to raise salaries next year, mostly between 1% and 5%. Inflation is projected to stabilize around 3.9% for 2026, and some analyses project moderate increases for non-unionized and unionized employees. Employers cite uncertainties such as global trade conditions, potential US tariffs, and domestic labor reforms, including a possible reduction in the workweek.

The unions’ proposal stands out for its ambition, reflecting continued efforts to recover real wages after seven years of increases. Between 2021 and 2025, Mexico’s minimum wage rose 56.7% in real terms, the largest gain among OECD countries, according to the OECD’s 2025 Employment Outlook. While businesses prepare for moderate adjustments, unions insist that a significant increase is justified to strengthen purchasing power and align wages with historical levels.

The Council of Representatives’ decision in December will determine the trajectory of wage policy in 2026, influencing both household income and corporate compensation strategies as Mexico continues its wage recovery.