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Mexico announces 12% minimum wage hike for 2025 to boost purchasing power

Mexico's government announced a 12% increase in the minimum wage starting next year to support the country's lowest-income workers. Labor Minister Marath Bolanos revealed the news during President Claudia Sheinbaum's regular morning briefing. The current minimum wage is approximately $12.23 (249 pesos) per day, a figure that has risen significantly under the previous administration, with a total increase of 135% since Sheinbaum's predecessor.

The new adjustment will raise the daily minimum wage to about $13.70 (278.80 pesos) across most of the country, while northern regions bordering the U.S. will see a higher rate of approximately $20.70 (420 pesos). This increase reflects an agreement between the labor and business sectors. "We continue on the path to rebuild the minimum wage and the purchasing power of Mexican men and women," Bolanos stated.

President Sheinbaum, who took office in October, reaffirmed her administration's commitment to annual wage increases of around 12%, dismissing fears of inflationary impacts. She cited central bank data to support her position that the wage hike would not fuel inflation.

Her administration aims to gradually raise the minimum wage to cover the cost of 2.5 basic food baskets, enough to meet the daily needs of a family of 3.7, by the end of her term in 2030.

Source: Reuters

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