Mexico’s New President Aims For Significant Wage Increases

Mexican President Claudia Sheinbaum has announced plans to raise the country’s minimum wage by approximately 12% starting next year, with a commitment to similar increases annually thereafter.

Current Wage Context

The minimum wage in Mexico currently stands at 248.93 pesos per day, following substantial increases implemented by the previous administration. According to national statistics, around 40% of the workforce earns minimum wage or less, highlighting the prevalence of informal labor in the country.

Ambitious Wage Goals

In a press conference on Thursday, Sheinbaum stated, “a wage increase of around 12% for next year and so on, every year around 12%.” She aims to gradually raise the minimum wage to cover the cost of 2.5 basic food baskets, an increase from the current coverage of 1.6 baskets.

Focus on Women’s Rights

Additionally, Sheinbaum unveiled a series of reforms aimed at enhancing women’s rights, including a constitutional guarantee of equal pay for equal work. This aligns with her commitment to improving workers’ conditions and economic stability.

Continuation of Previous Policies

Sheinbaum’s plans echo those of her predecessor, Andres Manuel Lopez Obrador, who initiated significant minimum wage hikes during his tenure. The minimum salary rose by 20% in both 2023 and 2024, reflecting efforts to boost workers’ purchasing power.

Work Week Legislation

The new president also expressed intentions to legislate a reduction in the workweek from 48 hours to 40 hours—a measure that was previously pursued by Lopez Obrador but ultimately failed to pass. This reform would require constitutional changes and support from two-thirds of lawmakers, facing opposition from businesses and the center-right National Action Party.

With these proposed changes, Sheinbaum’s administration aims to prioritize workers’ rights and promote economic equity in Mexico.

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