July 13, 2020

Volume X, Number 195

July 10, 2020

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Mexico’s Daily General Minimum Wage Will Increase in 2020

On December 16, 2019, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) issued a resolution decreeing an increase in the Daily General Minimum Wage (DGMW) applicable in Mexico in 2020. The DGMW will continue to be $102.68 Mexican pesos (MXP) (approximately $5.37 United States dollars (USD)) in most of Mexico and $176.72 MXP (approximately $9.30 USD) in the Free Zone of the North Border (Zona Libre de la Frontera Norte or ZLFN) until December 31, 2019.

Prior to determining the annual increase to the 2020 DGMW, the CONASAMI decided to increase the current DGMW by $14.67 MXP as an “independent recovery amount,” resulting in a 2020 DGMW of $117.35 MXP (approximately $6.17 USD). The reason behind this recovery increase is to adjust for 2019 global economic and political events, which affected the currency exchange rate between Mexican pesos and U.S. dollars.

The CONASAMI approved a 5 percent increase to the DGMW on top of the aforementioned independent recovery increase, leaving a final DGMW for 2020 of $123.22 MXP (approximately $6.40 USD). In combination, the independent recovery amount and the 5 percent increase represent a 20 percent increase in the DGMW.

The CONASAMI also increased the DGMW rate for the ZLFN. In the ZLFN, there will be a 5 percent increase to the 2019 rate of $176.72 MXP (approximately $9.30 USD), resulting in a rate of $185.56 MXP (approximately $9.70 USD) for 2020.

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

The five 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 individually.

© 2020, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.National Law Review, Volume IX, Number 353

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About this Author

Rodrigo de la Concha Alvarez, Ogletree Deakins Law Firm, Mexico, Labor and Employment Attorney
Associate

Rodrigo de la Concha Alvarez joined Ogletree Deakins in September of 2014. Previously, Rodrigo worked in private practice at a leading law firm in Mexico City in the Labor, Social Security and Immigration Practice Group and for two years at one of the most prestigious law firms in Mexico City in its collective and individual labor litigation practice, where he appeared before federal and local Conciliation and Arbitration Labor Boards around Mexico. Rodrigo began his legal career as a law clerk at Notary Office Number 29 in México City. Rodrigo speaks both Spanish and...

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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. 

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