December 20, 2018

Mexico to Increase Minimum Wage for 2019

Holland & Knight Alert
Leslie Palma

Leer en Español: Incremento al salario mínimo para 2019  

Mexico's National Minimum Wage Commission (CONASAMI) on Dec. 17, 2018, announced its decision to increase the minimum wage for 2019, the creation of a Salary Economic Area for the municipalities located 25 kilometers (approximately 15.5 miles) from the northern border and surrounding areas, and established a Border Minimum Wage.

Per the announcement, the daily minimum wage will increase on Jan. 1, 2019, from 88.36 Mexican pesos (approximately US $4.39) to 102.68 Mexican pesos (US $5.10). At the same time, the Border Minimum Wage will raise to 176.72 Mexican pesos (US $8.79).

The CONASAMI explained that this figure was squared from the current General Minimum Wage of 88.36 Mexican pesos per day, in addition to a nominal increase in Mexican pesos through the Independent Recovery Amount (MIR) of 79.94 Mexican pesos per day (US $3.97), and the consideration of an inflationary percentage adjustment of 5 percent.

The following municipalities will have to pay the Border Minimum Wage as of Jan. 1, 2019:

Baja California

  • Ensenada
  • Playas de Rosarito
  • Tijuana
  • Tecate
  • Mexicali

Sonora

  • San Luis Río Colorado
  • Puerto Peñasco
  • General Plutarco Elías Calles
  • Caborca
  • Altar
  • Sáric
  • Nogales
  • Santa Cruz
  • Cananea
  • Naco
  • Agua Prieta

Chihuahua

  • Janos
  • Ascensión
  • Juárez
  • Práxedis G. Guerrero
  • Guadalupe
  • Coyame del Sotol
  • Ojinaga
  • Manuel Benavides

Coahuila de Zaragoza

  • Ocampo
  • Acuña
  • Zaragoza
  • Jiménez
  • Piedras Negras
  • Nava
  • Guerrero
  • Hidalgo

Nuevo León

  • Anáhuac

Tamaulipas

  • Nuevo Laredo
  • Guerrero
  • Mier
  • Miguel Alemán
  • Camargo
  • Gustavo Díaz Ordaz
  • Reynosa
  • Río Bravo
  • Valle Hermoso
  • Matamoros

For more information or questions on how this minimum wage change may impact your business, contact the authors.   


 

 

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. Moreover, the laws of each jurisdiction are different and are constantly changing. If you have specific questions regarding a particular fact situation, we urge you to consult competent legal counsel.


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