Mexico: Minimum Wage Increase for 2021

On December 16, 2020, the National Commission on Minimum Wages (“CONASAMI”) issued a resolution to establish increases to the minimum wage for 2021. This resolution established that:

• The general minimum wage will be increased from $123.22 to $141.70
• The minimum wage of the Border Free Zone will be increased from $185.56 to $213.39
• Two professions were added to the list of professional minimum wages: domestic workers and agricultural laborers.

The increase to the general minimum wage comprises of a fixed increase of 6%, plus an increase of $10.46 for the Independent Recovery Amount (“MIR”). The increase of the minimum wage in the Border Free Zone is comprised of a fixed increase of 6%, plus an increase of $15.75 for the MIR, which amounts, in both cases, to an increase of 15%. Concerning this resolution, the employers’ that participate in the CONASAMI, specifically the Business Coordinating Council and COPARMEX [Employers’ Confederation of the Mexican Republic] have issued an statement expressing their unconformity with this minimum wage increase.

The statement of both business groups argued that, notwithstanding their support for minimum wages increase, these have to be implemented in a gradual and progressive manner. Furthermore, they also made reference to the inconvenience of this increase, considering the COVID-19 pandemic and the different measures that have been taken to prevent, mitigate and control health risks, under a national adverse economic context.

This significant increase to the minimum wage will surely complicate the review processes of collective bargaining agreements; at D&M Abogados we have a professional team to provide legal advice in regard to complex collective bargaining negotiations.

For more information on these articles or any other issues involving labour and employment matters in Mexico, please contact Oscar De La Vega (Partner) of De La Vega & Martinez Rojas S.C. at odelavega@dlvmr.com.mx or visit www.dlvmr.com.mx.