In brief

Effective 1 January 2021, the General Minimum Wage in Mexico will be MXN 141.70 (approximately USD 7.16) per day and in the Free Zone of the Northern Border (ZLFN), the General Minimum Wage will be MXN 213.39 (approximately USD 10.78) per day.


Contents

  1. What has changed?
  2. What it means for you?
  3. Action steps
  4. Further information

What has changed?

Effective 1 January 2021, the General Minimum Wage in Mexico will be MXN 141.70 (approximately USD 7.16) per day and in the Free Zone of the Northern Border (ZLFN), the General Minimum Wage will be MXN 213.39 (approximately USD 10.78) per day.

What it means for you?

As shown in the table below, the General Minimum Wage will increase by MXN 10.46 per day as an Independent Recovery Amount (MIR), plus a 6% increase on top of the MIR increase. In the ZLFN, there is an increase by MXN 15.75 per day as MIR, plus a 6% increase on top of the MIR increase.

 

General Minimum Wage for

General Daily Minimum Wage

2020

MIR

Increase Percentage

General Daily Minimum Wage

2021

Whole country (except ZLFN)

MXN 123.22

MXN 10.46

6%

MXN 141.70

ZLFN

MXN 185.56

MXN 15.75

6%

MXN 213.39

 

For Professional Minimum Wages, current salaries will increase by 15% throughout the country, except for:

- Press reporters: 21.8% in the ZLFN.

- Domestic workers: 25% in the rest of the country.

- Agricultural workers: 30% in the rest of the country.

Employers have traditionally considered lockstep percentage increases as a general parameter when making salary revisions for both individual employees and for the workforce collectively. However, the current practice when contemplating salary adjustments is to consider other factors as well, such as productivity, competitiveness, inflation, and the company's particular situation and circumstances.

Action steps

Where necessary, employers will need to make the required adjustments to their employees' wage rates, update their employees’ minimum base quotation salary for the payment of social security contributions, adjust the integration of the daily salary, and provide notice to the Mexican Social Security Institute.

Employers should also analyze the financial and human resources impact of the required increases and may wish to consider introducing efficiencies where possible to maintain competitiveness.

Further information

The National Minimum Wages Commission announced the approval of these changes but they have not yet been published in the Federal Official Gazette.