May 25, 2020

2017 Increase to Daily Minimum Wage for Mexico

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.

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About this Author

Stefano Sandoval, labor, employment attorney, Ogletree Deakins Law Firm

Stefano Sandoval Malori joined Ogletree Deakins in January 2016. Prior to that, Stefano joined a small local law firm as Partner of the Labor, Employment and Social Security Practice Group (2015). Previously, he collaborated as Senior Associate in one of the most prestigious law firms in Mexico (2014), during such time, Stefano focused his practice in labor and employment consulting, hiring and termination processes of executives, personnel downsizings and employee transfers, labor reorganizations, implementation of working policies; likewise, he specialized in labor matters related to...

Pietro Straulino-Rodriguez , Labor, Employment, Attorney, Ogletree Deakins Law Firm
Managing Partner

Pietro Straulino-Rodríguez is the managing partner of the Mexico City office of Ogletree Deakins. Before starting at Ogletree Deakins, Pietro worked for a number of years as a partner in private practice at a leading law firm in Mexico City in the firm’s Labor, Social Security and Immigration practice group. Previously he worked for a major labor boutique in Mexico City, in which he participated as an advisor and litigator in several matters. In addition, Pietro worked in the legal and government relations department of Ford Motor Company in Mexico. He has successfully combined his professional practice with his teaching activity as a professor of Labor Law at the Escuela Libre de Derecho. He speaks Spanish, English and Italian.