Background on Conasami and the MIR
The National Commission for Minimum Wages (Conasami) will establish a Consultative Committee next week to examine the continuation or potential elimination of the Independent Recovery Amount (MIR). The MIR has been a crucial instrument in salary policy for several years.
Who is Luis Munguía?
Luis Munguía, the president of Conasami, explained to El Economista that the decision to form this committee stems from the lack of consensus among the sectors comprising the Council of Representatives. The labor sector has repeatedly advocated for the elimination of the MIR, while the business sector argues that its removal could lead to inflationary pressures, especially since the full salary recovery target has yet to be achieved.
Composition and Objectives of the Consultative Committee
The Consultative Committee will be formally established during the session on Tuesday, January 27th. It will consist of representatives from both the labor and business sectors, as well as experts from external institutions such as federal government departments or academic centers. Potential participants include the Bank of Mexico, the Secretariat of Finance, or universities like UNAM or ITAM, to provide technical evidence on the effects of MIR on wage structure and the overall economy.
The Role of MIR
Munguía highlighted that the MIR has been a useful instrument for raising the minimum wage sustainably and rapidly without automatically transferring those increases to other contractual salaries. By fixing a portion of the increase in pesos rather than just as a percentage, the mechanism has allowed benefits to concentrate on lower-income workers, avoiding widespread indexing that limited Mexico’s salary policy for decades.
Side Effects of MIR
However, Munguía acknowledged that one side effect has been increased wage compression. More workers are finding themselves in salary ranges close to the minimum wage, even in companies with seniority or responsibility differences. This has fueled discontent among some unions that believe the MIR restricts their collective bargaining margin.
Consultative Committee’s Task
The Consultative Committee will analyze whether eliminating the MIR would effectively help decompress wage tables or if it would instead pose macroeconomic risks. Munguía proposes that the group submit conclusions before September to provide technical inputs before the end-of-year salary discussion and prevent another contentious negotiation.
Agenda 2026: Work Hours and Gender Focus
Beyond the MIR debate, Conasami anticipates 2026 to be a year of technical analysis around two major themes: reducing work hours and the impact of the minimum wage on women’s labor participation.
Work Hours Analysis
Although a reduction won’t be implemented this year, the committee will monitor anticipated effects of the reform. Several companies have already adjusted their work hour schemes before the legislation takes effect, allowing measurement of impacts on productivity, costs, and work organization throughout 2026. Initial results may be observable by mid-year if Congress approves the reform in the first half.
Gender Perspective Study
The second focus will be a gender-perspective study to be published in March. Unlike previous analyses centered on wage gaps, this new work will evaluate if the minimum wage increase has encouraged greater female labor market participation, a phenomenon documented in other countries and now being investigated in Mexico.
Ongoing Monitoring
Conasami will continue its usual monitoring of the minimum wage’s impact on inflation, salary structure, and contractual revisions.
Key Questions and Answers
- What is the purpose of the Consultative Committee? The committee will analyze whether eliminating the MIR would effectively decompress wage tables or if it would pose macroeconomic risks.
- Who will participate in the Consultative Committee? The committee will include representatives from labor and business sectors, as well as experts from external institutions like the Bank of Mexico and academic centers.
- What are the two major themes for analysis in 2026? The themes are reducing work hours and the impact of the minimum wage on women’s labor participation.
- When will the Consultative Committee submit its conclusions? Munguía proposes that the group submit conclusions before September to provide technical inputs before the end-of-year salary discussion.
