The president of Mexico, Claudia Sheinbaum announced this morning during his press conference that the minimum wage in Mexico will increase by 12% by 2025, so it has meant a great adjustment for the Mexican economy.
It is indeed not the first time that increases the minimum wage in Mexico, as since 2014 several adjustments have been made in relation to inflation and the needs of Mexican families.
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Hear we tell you how much the minimum wage has increased from 2014 to 2024. Do you remember?
2014.
According to the Council of Representatives of the National Minimum Wage Commission, in 2013 it was approved to grant a 3.9% increase to the minimum wage for 2014 during the six-year term of Enrique Peña Nieto.
The new minimum wage at that time was 67.29 pesos per day in geographical area A while in geographical area B,it was 63.77 pesos per day.
2015.
Unlike 2014, as of October 1, 2015, a only general minimum wage of 70.10 pesos daily for the entire country.
The Council of representatives highlighted as an unprecedented past fact that for the first time a single general minimum wage was established for the entire country.
2016.
Due to the inflation that was beginning to affect the Mexican economy, the National Minimum Wage Commission decided to increase the minimum wage to 73.04 pesos per day and it woudl come into force as of January 1 of that year.
2017.
The general minimum wage in Mexico in 2017 was 80.04 pesos per day, increasing significantly throughout the year with a new amount of 85.04 pesos per day; As of December 1, 2017, the salary was adjusted to 88.36 pesos per day.
2018.
An increase of 16.2% was made that year regarding the minimum wage and in December of that year a general increase to 102.68 pesos per day was approved,coinciding with the entry of Andrés Manuel to the presidency and the change of government.
Likewise,the general border minimum wage (geographic zone A) increased to 176.72 pesos per day.
2019-2024.
During 2019 The minimum wage remained the same as in 2018, though, as of the year 2020 (year in which the COVID 19 pandemic began), the salary increased 123.22 pesos daily and in the border area it went from 176.72 to 185.56 pesos.
In 2021 The National Minimum Wages Commission persistent that the minimum wage would rise from 123.22 to 141.70 pesos; while in the Northern Border Free Zone it would go from 185.56 to 213.39 pesos.
In 2022, The minimum wage had a slight increase to 172.87 pesos per day while in the Northern Border Free Zone it went to 260.34 pesos per day.
It wasn’t until 2023 that the minimum wage increased significantly and increased to 207.44 pesos per day and 312.41 pesos for the Northern Border Free Zone.The above represented an increase of 20% compared to last year.
Related
How might small businesses react to the proposed 12% increase in minimum wage by 2025?
Interview between Time.news Editor and Economic Expert Dr. Laura Martínez
Time.news Editor (TNE): Good morning, Dr. Martínez. Thank you for joining us today. We have just learned about the proclamation from President Claudia Sheinbaum regarding a important increase in Mexico’s minimum wage by 12% by 2025. What are your thoughts on this decision?
Dr. Laura Martínez (DLM): Good morning! I appreciate the opportunity to discuss this vital topic. the 12% increase is indeed a significant step forward for the Mexican economy and reflects a continued effort to adapt to inflation and the changing needs of families.Since 2014, there have been several adjustments, and this commitment is crucial, especially during economic uncertainty.
TNE: Indeed, adjustments have been made periodically since 2014. Can you give us a brief overview of how the minimum wage has evolved from that point until now?
DLM: Absolutely! In 2014, for example, the minimum wage was set at 67.29 pesos per day in geographical area A, and 63.77 pesos in area B. After that, we witnessed incremental increases aimed at improving the purchasing power of workers. Each adjustment has been carefully linked to inflation rates and living costs to help support Mexican families.
TNE: So, the adjustments have been consistent since 2014. What do you think are the broader economic implications of this new 12% increase, especially as we look toward 2025?
DLM: The implications are multifaceted. On one hand, a higher minimum wage can boost consumer spending, as workers have more disposable income. This can stimulate economic growth. It also reflects a commitment to reducing poverty and income inequality, which has been a growing issue in Mexico. However, it’s essential to balance this with potential impacts on small businesses, which might struggle with increased payroll costs.
TNE: That’s an vital point. With increased costs for businesses, do you think we might see any pushback from the private sector?
DLM: Yes, it is indeed likely. While larger corporations might absorb the costs more easily, small and medium-sized enterprises may feel the pinch. This could lead to calls for a gradual implementation of wage increases or additional support from the government to help these businesses adjust. it’s a delicate balance to maintain the wellbeing of workers while ensuring the sustainability of businesses.
TNE: Looking back at the adjustments made since 2014, what can we learn about the effectiveness of such policies?
DLM: One of the key lessons is that such policies can be effective if they are part of a broader economic strategy. Regular adjustments that consider inflation and cost of living have generally helped improve workers’ purchasing power. However, the government must also address structural issues in the economy—like low productivity and informal labor markets—to ensure these wage increases lead to lasting improvements in living standards.
TNE: Those insights are incredibly valuable, Dr. martínez. As a final thought, what would you like to see from the government moving forward in terms of economic policy and minimum wage adjustments?
DLM: I would advocate for a comprehensive approach. Alongside minimum wage increases, we should see investments in education, training programs, and infrastructure that boost employment opportunities and productivity. ensuring that wage policies don’t outpace economic growth is crucial. It’s about creating a sustainable framework where both workers and businesses can thrive.
TNE: thank you so much for your time and expertise,Dr.Martínez. This has been a thought-provoking discussion on a key issue for the Mexican economy.
DLM: Thank you for having me! it’s an essential topic, and I’m glad to contribute to the conversation.