On December 1, 2016, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) issued a resolution effecting an increase in the Daily General Minimum Wage (DGMW) applicable for Mexico in 2017. Please bear in mind that for the remainder of 2016, the DGMW will continue to be $73.04 Mexican pesos [approximately $3.54 United States dollars (USD)].

Prior to determining the annual increase to the 2017 DGMW for all legal effects, the CONASAMI increased the current 2016 DGMW by Mex$4.00, as an “Independent Recovery Amount” that made the new DGMW for 2017, equal to Mex$77.04 (approximately $3.74 USD). The reason behind this “recovery increase” was to adjust for 2016 global economic and political events, which importantly affected the currency exchange rate between Mexican pesos and USDs.

In addition to the increase noted above, the CONASAMI approved a 3.9 percent increase on top of the aforementioned new DGMW for 2017, leaving a final DGMW for year 2017 of Mex$80.04 (approximately $3.88 USD).

The aforementioned increase is awaiting publication in the Official Gazette of the Federation (Diario Oficial de la Federación).

It should be noted that the 3.9 percent increase may serve as a general guideline for revising scaled wages in collective bargaining agreements applicable to Mexican companies; however, employers may want to analyze each particular case on an independent basis, since the new 2017 DGMW increased by 8.9 percent total, with respect to 2016 DGMW.

The Mexico City office of Ogletree Deakins will continue to monitor and report on developments in the labor and employment laws of Mexico as they occur.