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MINIMUM WAGE INCREASE FOR 2022

On December 8, 2021, the National Minimum Wages Commission (hereinafter the “Commission”) established the general and professional minimum wages that will be in force as of January 1, 2022.


For the Northern Border Free Zone, made up of the municipalities that border the United States of America, the minimum wage increases from $213.39 to $260.34 Mexican pesos per day of work.


For the rest of the country the minimum wage increases from $141.70 to $172.87 Mexican pesos per day of work.


This represents an increase of 22% in the two zones.


It is important to point out that at the end of March of this year, the following paragraph was added to article 90 of the Federal Labor Law:


"The annual setting of minimum wages, or their revision, will never be below the inflation observed during the period of their validity that has elapsed."


As of the first half of November 2021, an annual inflation of 7.05% was registered. Inflation is expected to close the year at an annual level of 6.63% and the economic growth for the year is expected to be 6.0%.


This 22% increase is comparable to those granted in 2019, with 16.2%, in 2020 with 20% and in 2021 with 15%. The Commission states that it is the highest increase since 1987, with employees in Mexico reaching the level of purchasing power they had in 1985.


At Toulet & Gottfried, updating is our commitment to keep our clients informed of constant legal changes.


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