Mexico to Increase Minimum Wage for 2015

On December 19, 2014, Mexico’s National Minimum Wage Commission published its decision to increase the minimum wage for 2015. The Commission approved an increase of 4.2 percent, effective January 1, 2015.

The minimum wage in Mexico is based on two geographic areas. As of January 1, the daily minimum wage rate for Zone “A” will be MXP (Mexican Peso) $70.10, and for Zone “B” it will be MXP $66.45.

The Commission took into consideration that a higher increase may have a negative impact on the economy, since currently many governmental fees, fines, and some home mortgages are linked to the minimum wage. Once the minimum wage is decoupled from these concepts, it will be possible to make a substantial increase to the minimum wage in Mexico.

With this objective in mind, on November 28, 2014, Mexico City’s Official Gazette published the decree through which several local laws were amended to disassociate the payment of penalties and government fees from the minimum wage, and created the “Law of Account Unity” with which all the government fees and fines will be calculated.

This is the first step in a campaign carried out by the mayor of Mexico City, seeking an increase of the minimum wage in the short term.

Likewise, on December 5, 2014, the Federal Executive Power in Mexico presented a proposal to the Mexican House of Representatives to amend the Federal Constitution in order to decouple the minimum wage from federal obligations, fees, and penalties, as well as to create a federal Law of Account Unity.

It is likely that during the coming year, these laws will be approved and thus, the Commission will approve a higher minimum wage increase for 2016.