Get ready for Mexico’s Increase to the Minimum Wage
The National Minimum Wage Commission (CONASAMI) communicated an increase of 3.9% to the General Minimum Wage for 2018, as well as an additional increase of MXN 5.00 as an "Independent Recovery Amount" effective 1 December 2017, pending publication on the Federal Official Gazette.
Therefore, the new daily General Minimum Wage applicable to the whole country, effective 1 December 2017, will be:
It is important to consider this increase in order to, if applicable, update the employees’ base quotation salary for the payment of social security contributions and give the proper notice to the Mexican Social Security Institute.
Although the increase percentage usually served as a general parameter for salary revisions (individual and collective), the current trend is to dissociate them and consider other factors, such as productivity, competitiveness, inflation, and continue evaluating each company's particular situation and background.