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Mexico’s Daily Minimum Wage to Increase effective December 2017

On November 21, 2017, 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 for Mexico . Note that the DGMW will continue to be $80.04 Mexican pesos (MXP) (which is approximately equivalent to $4.25 USD) effective December 1, 2017.

Prior to determining the annual increase to the 2018 DGMW for all legal effects, the CONASAMI increased the current 2017 DGMW by $5.00 MXP, as an “Independent Recovery Amount” that made the new DGMW, equal to $85.04 MXP (approximately $4.52 USD). The reason behind this “recovery increase” was to adjust for 2017 global economic and political events, which significantly 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 in addition to the aforementioned new DGMW for December 2017, leaving a final DGMW of $88.36 MXP (which is approximately $4.70 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.

© 2017, Ogletree, Deakins, Nash, Smoak & Stewart, P.C., All Rights Reserved.

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

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 subcontracting and mergers and acquisitions. He started his professional career in one of the most important international law firms of the world; in such firm, he collaborated for more than 8 years as law clerk and associate. Stefano is fluent in English and Spanish.

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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...

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