[co-author: Valeria Cutipa]
On December 1, 2021, the National Minimum Wage Commission (“CONASAMI” for its acronym in Spanish) agreed to increase Mexico’s general minimum wage to $172.87 Mexican pesos per day, and $260.34 Mexican pesos per day in the Free Economic Zone of the Northern Border, effective January 1, 2022. According to CONASAMI’s press release, $16.90 Mexican pesos were added to the current minimum wage through the so-called Independent Recovery Amount (MIR) and an increase of 9% was applied. Therefore, the minimum wage in force for 2022 implies a global increase of 22%.
As a reminder, the municipalities included in the Free Economic Zone of the Northern Border are as follows: (i) Baja California Norte: Ensenada, Playas de Rosarito, Tijuana, Tecate and Mexicali; (ii) Sonora: San Luis Rio Colorado, Puerto Peñasco, General Plutarco Elias Calles, Caborca, Altar, Saric, Nogales, Santa Cruz, Cananea, Naco and Agua Prieta; (iii) Chihuahua: Janos, Ascension, Juarez, Praxedis G. Guerrero, Guadalupe, Coyame del Sotol, Ojinaga and Manuel Benavides; (iv) Coahuila: Ocampo, Acuña, Zaragoza, Jimenez, Piedras Negras, Nava, Guerrero and Hidalgo; (v) Nuevo Leon: Anahuac; and (vi) Tamaulipas: Nuevo Laredo, Guerrero, Mier, Miguel Aleman, Camargo, Gustavo Diaz Ordaz, Reynosa, Río Bravo, Valle Hermoso and Matamoros.
CONASAMI comprises representatives of (a) the government, (b) employers, and (c) employees, which meets annually on the topic of the minimum wage. Unlike last year, this year there was agreement among the three parties.
Employers should review and adjust their payroll practices to comply with this new increase to the minimum wage, which may also potentially impact benefits likes savings fund and food coupons depending on how these benefits have been agreed to with employees and unions.
