In order to help workers affected by the pandemic, the authorities approved the increase in minimum salary in the country with the sole task of supporting more than six million people in the country. What are the benefits of this and from when will it apply? The answer to this and more in the following paragraphs. The National Minimum Wage Commission (Conasami) was clear in its position on the increase in the minimum wage in Mexico, so now it remains to wait for this new benefit to come into force in 2022.
According to the National Human Rights Commission (CNDH), the concept of minimum wage or income for workers has its origins in 1890, in New Zealand and Australia, and was motivated by the problems suffered by workers, especially women and young people, whose remuneration was so low that it did not allow them to achieve self-sufficiency for themselves and their families.
According to information from the Business Coordinating Council (CCE), the composition of the tripartite agreement is a 9% increase plus an Independent Recovery Amount (MIR) in both zones. “The General Minimum Wage of the Free Zone of the Northern Border will cover 112% of the Family Welfare Line and the General Minimum Wage of the Rest of the Country will cover 74%”, pointed out the CCE.
Benefits of the new ‘Minimum Wage’
- The real income of lower-income formal workers has improved in the last three years; At the end of October 2021, the 10% of workers with the lowest labor income who contribute to the IMSS had received an increase of 91.2% in the ZLFN and 33.5% in the rest of the country, according to estimates published by Conasami.
- Unemployment has not increased significantly as a result of the increase in the minimum wage on the northern border, as evidenced by a study carried out by specialists from the Bank of Mexico.
- Inflation on the northern border would have had an increase of 1.2% in 2019 due to the increase in the minimum wage, although this effect was diluted, since VAT was halved simultaneously, according to another study carried out by researchers of the central bank.
By how much will the ‘Minimum Wage’ increase?
The increase in the minimum wage will be 22% for the minimum wage of professionals or those who perform special jobs. Which means that it will rise from 141.70 pesos to 172.87 pesos, while in the North Border Free Zone it will have an increase from 213.39 to 260.34 pesos.
Minimum Wage: since when does the increase apply?
As reported by Conasami, the new minimum wage for Mexico will apply from January 2022. This increase is added to those that have been approved so far during the administration of Andrés Manuel López Obrador. In 2019 it was 16.2%, in 2020 it increased to 20% and for 2021 15% was approved. It is also worth noting that next year will be the largest increase.
How will the minimum wage be in the Free Zone?
- Bricklayer: $260.34 Mexican pesos.
- Clerk apothecary, pharmacy, drugstore: $260.34 pesos
- Bulldozer and/or excavator operator: $260.34 pesos.
- Cash register cashier: $260.34 pesos.
- Bartender (a) beverage preparer: $260.34 pesos.
- Carpenter of black work: $260.34 pesos.
- Cook restaurants, fondas, etc: $260.34 pesos.
- Cargo truck driver in general: $260.34 pesos.
- Electrician and electrical installer: $ 260.34 pesos.
- Warehouse and/or warehouse manager: $260.34 pesos.
- Gas station: $260.34 Mexican pesos.
- Mechanical: $260.34 Mexican pesos.
How will the minimum wage be for the rest?
- Bricklayer: $199.42 Mexican pesos.
- Clerk apothecary, pharmacy, drugstore: $176.28 pesos.
- Bulldozer and/or excavator operator: $208.91 pesos.
- Cash register cashier: $179.34 pesos.
- Bartender (a) beverage preparer: $183.01 pesos.
- Carpenter of black work: $199.42 pesos.
- Carpenter, furniture repair: $196.14 pesos.
- Cook restaurants, fondas, etc: $201.95 pesos.
- Cargo truck driver in general: $203.52 pesos.
- Electrician and electrical installer: $ 195.44 pesos.
- Warehouse and/or warehouse manager: $182.04 pesos.
- Gas station: $179.08 Mexican pesos.
- Mechanical: $205.96 Mexican pesos.