He Government of Mexico This Wednesday he announced that, as of 2025he minimum wage will have a 12% increase. Given this, the question has arisen as to which workers it will benefit, below we tell you.
How much will the minimum wage be by 2025?
according to data provided by the Secretary of Labor, Marath Bolañosduring the morning of the town this December 4, the general minimum wage will go from 248.93 to 278.80 daily pesos, while in the Northern Border Free zone (ZLFN) will increase from 374.89 to 419.88 daily pesos.
That is, with this increase, the minimum monthly wage will go from $7,467 pesos to $8,364 pesos in the general area, and from $11,246 pesos to $12,596 pesos in the free border zone norte.
Likewise, it was detailed that the same percentage increase will be applied to the 61 occupations with a minimum professional salary.
When will the new Minimum Wage amount come into force?
Marath Baruch Bolaños López, Secretary of Labor and Social Welfaredetailed that it will be from next January 1, 2025 when the more than eight million workers will see and be able to benefit from this increase in the Minimum Wage in their pockets.
But who are the workers who will benefit from the increase in the Minimum Wage?
This increase is intended protect workers against paying unduly low wages.
In that sense, the increase in the minimum wage will only benefit the formal sector workers.
So those in the informal sector will not benefit from this adjustmentnor do workers whose income exceeds the minimum wage,since their increases depend on the terms of their employment contracts or negotiations with unions.
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Title: Insights on Mexico’s Upcoming Minimum Wage Increase: An Interview with Labor Expert
Q: Thank you for joining us today. To start, can you give us an overview of the recent announcement by the Mexican government regarding the minimum wage increase scheduled for 2025?
A: Absolutely! The Government of Mexico has announced that, starting January 1, 2025, the general minimum wage will increase by 12%, rising from 248.93 pesos to 278.80 pesos daily. For workers in the Northern Border Free Zone, the minimum wage will go from 374.89 pesos to 419.88 pesos daily. This translates to an increase in the monthly wage from 7,467 pesos to 8,364 pesos in the general area,and from 11,246 pesos to 12,596 pesos in the free border zone.
Q: who will primarily benefit from this wage increase, and are there any exceptions we should be aware of?
A: The increase is designed primarily to protect formal sector workers who earn at or below the minimum wage. Approximately eight million workers are expected to see a positive impact on their earnings. However, it’s important to note that those in the informal sector will not benefit from this adjustment. Workers whose incomes exceed the minimum wage will also not see an automatic increase, as their wage adjustments depend on their employment contracts or union negotiations.
Q: What are the potential implications of this minimum wage increase for the labor market in Mexico?
A: This adjustment is significant as it aims to combat wage stagnation and ensure that workers receive fair compensation. It signals the government’s commitment to addressing low wages, which can help reduce poverty levels and improve the quality of life for many Mexicans. Though, the real challenge lies in its implementation and how businesses will respond, notably in light of existing informal employment trends. Companies may need to re-evaluate their payroll structures, and this could also push some businesses, particularly smaller ones, to adapt by raising their prices or even reconsidering their workforce.
Q: Given the increase in the minimum wage, what advice would you give to employers in preparing for this change?
A: Employers should begin by reviewing their payroll processes and understanding the implications of this wage increase on their budget. They should assess how many employees will be affected and ensure compliance with the new wage laws. It would also be wise for businesses to communicate transparently with their employees about any changes and how they plan to address the wage increase. Additionally, employers should consider investing in employee training and advancement to enhance productivity, potentially offsetting some of the increased labor costs.
Q: Looking beyond 2025, what trends should we anticipate in the labor market in Mexico?
A: As the minimum wage continues to rise, we may see more discussions surrounding labor rights and working conditions in both formal and informal sectors. With the government taking a stance on wage increases, it can also lead to further policies aimed at protecting workers’ rights. We might witness a gradual shift towards formalizing more jobs in the economy, as workers seek the benefits that come with formal employment.Furthermore, this could drive stronger union activity and collective bargaining initiatives in various industries.
Q: Lastly, what message would you like to share with workers as they prepare for these changes?
A: I encourage workers to stay informed about their rights and entitlements with the upcoming minimum wage adjustments. It’s crucial for them to engage with their unions and participate in discussions about working conditions and wages. This historic increase is an chance not just for improved wages, but also for uniting together as a workforce to advocate for broader changes that could benefit all workers in mexico.
Q: Thank you for your insights. We look forward to seeing how these changes unfold in the future.
A: Thank you for having me! It’s a pleasure to discuss these important topics.
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These insights provide an engaging view into the upcoming minimum wage adjustments in Mexico, touching on vital implications, practical advice for employers and workers, and potential industry shifts.