Why is the Northern Border’s Minimum Wage Higher Than the Rest of the Country?

Web Editor

January 7, 2026

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Introduction

On January 1, a new minimum wage amount for 2025 took effect. The general reference salary has a monthly value of 9,582.47 pesos; however, in the Northern Border region, it is 13,409.80 pesos per month. This means the border region has a basic remuneration almost 40% higher than the rest of the country.

The Zona Libre de la Frontera Norte (ZLFN) Program

For over a century, the minimum wage was uniform across the country until 2019 when the Zona Libre de la Frontera Norte (ZLFN) program was introduced. This program encompassed various border municipalities with the United States and included lower IVA and ISR taxes, along with a minimum wage higher than the general rate. The aim was to maintain the competitiveness of this border region.

Historical Context and Current Status

In 2025, the minimum wage in the Northern Border region became the highest-paid reference salary in the country’s history, according to an analysis by the National Commission of Minimum Wages (Conasami).

Historically, the highest general salary paid in Mexico was in October 1976 at 410.87 pesos per day, equivalent to today’s value. Despite a recent 5% adjustment, the reference salary in the ZLFN region remains above this historical mark.

Impact and Relevance

The Northern Border region, comprising more than 40 municipalities, will have a minimum wage 40% higher than the rest of Mexico starting in 2026. This unique situation stems from the ZLFN program, which was designed to boost the region’s competitiveness and attract investment. The higher minimum wage aims to balance the cost of living differences between the border areas and the interior, ensuring fair compensation for workers in this specific region.

Key Questions and Answers

  • What is the Zona Libre de la Frontera Norte (ZLFN) program? The ZLFN is a Mexican initiative that aims to enhance the competitiveness of border regions with the United States by offering lower taxes and a higher minimum wage than the national average.
  • Why is the Northern Border’s minimum wage higher than the rest of Mexico? The ZLFN program, established in 2019, created a higher minimum wage for the border region to account for cost of living differences and attract investment.
  • When did the higher minimum wage in the Northern Border region become the highest in Mexico’s history? In 2025, the minimum wage in the Northern Border region surpassed all previous records, as determined by Conasami.
  • What was the highest general salary ever paid in Mexico? The highest general salary, equivalent to 410.87 pesos per day in today’s value, was paid in October 1976.