Who is Alvaro and Why is He Relevant?
Alvaro, a worker in Mexico, found himself pondering whether his employer’s practice of paying part of the minimum wage in kind was legal. His situation highlights a common question among workers regarding their rights and the ways employers attempt to circumvent minimum wage laws.
Understanding Mexico’s Minimum Wage
Mexico’s minimum wage is a non-negotiable right, and no worker should receive less than the established amount. In 2026, the monthly minimum wage will be 9,451 pesos in most of the country, except for 46 municipalities along the northern border where it will be 13,409.80 pesos per month.
Can Employers Pay Part of Minimum Wage in Kind?
The answer is a clear no. According to Vanessa Díaz Vázquez, a labor law specialist, “No employer can pay you less than the minimum wage, as it must be paid in cash.” The Ley Federal del Trabajo (Federal Labor Law) Article 90 explicitly states that workers have the right to receive their minimum wage in cash.
Legal Implications of Paying Minimum Wage in Kind
If an employer were to pay part of the minimum wage in kind or as compensation equivalent to a portion of the legal amount, they would be violating the Federal Labor Law. Even if the compensation were equal to or greater than the minimum wage, it would still be an infringement.
- Minimum Wage Payment Methods: The wage can be paid through transfers, deposits, or in cash, but it must always be complete and within the agreed-upon timeframe in the contract between the worker and employer.
- Ilegality of Partial Payment in Kind: Any company that pays less than the minimum wage is violating workers’ rights, as everyone has the right to receive at least the minimum wage for their services. This practice is both poor and illegal, according to labor law experts.
- Restrictions on Salary Adjustments: The Federal Labor Law (Article 97) states that minimum wages cannot be subject to deductions or reductions, except in specific cases like covering child support payments ordered by authorities.
- Payment in Pesos Only: The law mandates that the salary must be paid in legal tender, and employers cannot pay in goods, vouchers, or any other form intended to replace money (Article 101).
What Extra Benefits Can Employers Offer?
While employers cannot pay less than the minimum wage, they can offer extraordinary benefits to their employees. Examples include food vouchers (valiados de despensa), which are a labor benefit that cannot exceed around 3,450 pesos per month. Approximately 10 million formal workers in Mexico receive this benefit, according to the Asociación de Sociedades Emisoras de Vales (ASEVAL).
Other ways to add value for workers include punctuality bonuses, productivity bonuses, and more. These are known as illegal benefits but cannot be used to reduce the minimum wage below its legal amount.
What Should Workers Do If Paid Part of Minimum Wage in Kind?
Workers like Alvaro who receive part of their minimum wage in kind or through other “compensations” are protected by law and can denounce the irregularity. Workers should file an anonymous complaint with the federal labor secretariat, which will then conduct an inspection to determine if there’s a violation of workers’ rights at the workplace, such as being paid less than the minimum wage.
If an employer argues that a worker agreed to receive part of their minimum wage in kind, labor law protects the employee because the minimum wage is an irrenunciable right, according to labor law experts.
