Mexico City, Mexico — The National Commission of Minimum Wages for the country has decided not to increase minimum wage for Mexico.
The current minimum wage for Mexico sits at 88.36 peso per day, and over the past few years, has seen a slight increase each year. However, after an unanimous vote, the National Commission has announced it will not be providing an increase this year.
The National Commission of Minimum Wages argued that they arrived at the decision to not enforce an increase after evaluating the possible negative effects on economic and labor indicators that have presented favorable development in the country.
Among these are the upward revisions of growth expectations made by the International Monetary Fund, the Bank of Mexico and the World Bank, as well as the creation of employment in the formal sector and the decrease of inflation.
They say they also evaluated different factors that may adversely affect economic prospects of Mexico and the evolution of national financial markets, among them, the uncertainty surrounding the negotiations of the North American Free Trade Agreement (NAFTA) and the future of the bilateral relationship with the United States.
The Commission added that they also considered the adoption of protectionist trade policies and the possible materialization of geopolitical risks, the monetary normalization on the part of the Federal Reserve of the United States that could bring episodes of volatility to the national economy and the tax reform approved by the US Congress in December of last year.
The Commission observed that, within Mexico, the possibility of the current electoral contest bringing financial volatility cannot be ruled out. The proposal to increase the country’s minimum wage to 95.15 peso per day has been denied.
The minimum wage in Mexico will remain at 88.36 pesos per day, at least for the remainder of this year.