The Week in Talent: Minimum Wage to Increase by 20 PercentBy Cas Biekmann | Fri, 12/20/2019 - 13:33
This week, Mexico’s new minimum wage has been announced. The amount workers have to spend commuting causes concern and workers that do not receive a Christmas bonus reach historical numbers. Furthermore, President López Obrador visits the US Congress to celebrate a successful USMCA negotiation.
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MInimum Wage Increases
The minimum wage in Mexico will go up to MX$123.22 (US$6.52) in 2020, an increase of 20 percent. In the Northern border area, the Council of Representatives of the National Minimum Wages Commission (CONASAMI) approved an increase of 5 percent to go from MX$176 (US$9.3) to MX$185.56 (US$9.81) in the northern border. President López Obrador praises the increase and highlights that it will benefit the national economy.
Each Year, Mexican Workers Spend 480 Hours in Traffic
According to IMCO and SinTráfico, Mexican workers have to invest 20 days in commutes. This means a loss of MX$94 billion (US$4.97 billion) per year in terms of productivity. Those that own a car spend less time in transport but still amass 384 hours in yearly commutes. What is more, time spent commuting has a diverse effect on quality of life.
Workers Without Bonuses Are Now at 14.5 Million
In 2019, 461,000 people joined the list of workers with formal salaries who do not have an aguinaldo, a Christmas bonus, as a work benefit. This represents an annual increase of 3.3 percent. The number reached a historical figure of 14.5 million, quotes INEGI.
President López Obrador Celebrates USMCA's Approval in US Congress
The agreement was approved by 385 votes in favor and 41 against in the US Congress, currently controlled by the Democratic opposition. It must still be approved by the US Senate, where it will be discussed in 2020. Since the Senate is in Republican hands, experts expect it to pass without fuzz.