On December 19 2016 the National Minimum Wages Commission (CONASAMI) published a resolution in the Federal Official Gazette increasing general and professional minimum wages.

After analysing various studies regarding the minimum wage, inflation, employment, Mexican corporate sustainability and global economic growth forecasts, CONASAMI first increased the general minimum wage by Ps4 (known as the 'independent recovery amount' due to its extraordinary nature), resulting in a rate of Ps77.04 per day, with the objective of gradually and steadily improving the purchasing power of employees who earn the minimum wage. Immediately thereafter, CONASAMI increased both general and professional minimum wages by 3.9%, resulting in a rate of Ps80.04 per day.

These increases were effective as of January 1 2017.

CONASAMI has reiterated on several occasions, including when drafting this resolution, that:

  • the referred increases are non-cumulative; and
  • as such, employers and unions must not consider a 9.58% minimum wage increase under any circumstances, particularly in salary revision bargaining processes held during 2017. Rather, the increase should be limited to 3.9%.

CONASAMI has also recommended that contractual wage negotiations be conducted with regard to the specific conditions of each company, taking into account productivity, competitiveness and the need to create better jobs.

However, this is complicated due to the recent rise in gasoline prices throughout the country, which has had a direct impact on the cost of various goods and services, thus nullifying the wage increase previously granted. As such, some trade unions have publicly urged their members to request a salary increase of at least 7% in salary revision bargaining processes, in order to regain their purchasing power.

For further information on this topic please contact Nadia Gonzalez Elizondo at Santamarina y Steta by telephone (+52 81 8133 6000) or email ([email protected]). The Santamarina y Steta website can be accessed at www.s-s.mx.