Background on the Proposed Minimum Wage Increase
In the Mexican Senate, a project is being pushed to elevate the minimum wage to match two basic baskets—one for food and one for non-food essentials. This adjustment would result in approximately a 17% increase for the following year.
Who are the Proponents?
The initiative is championed by senators from Movimiento Ciudadano (MC) and aims to amend the Constitution so that the minimum wage is never below two basic baskets, as determined by the Instituto Nacional de Estadística y Geografía (Inegi). As of September, the minimum wage reached a value of 9,481.68 pesos.
The Role of Inegi
Following the demise of Coneval, Inegi is now responsible for measuring the poverty line by income. This value is updated monthly.
Current Minimum Wage Situation
The proposed project in the Senate seeks to ensure that the monthly minimum wage general amount does not fall below two basic baskets, as established by Inegi.
The MC project acknowledges that the ideal minimum wage standard would be equivalent to 3.3 times the poverty line by income, considering an average Mexican household size of 3.3 members and the basic remuneration should be sufficient to meet normal material, social, and cultural needs of a household head and provide for the mandatory education of children.
However, this would imply an 82% growth, which the legislators recognize should be achieved gradually and progressively.
Implementation Plan
The proposal contemplates that the minimum wage will reach twice the poverty line by income value gradually, without exceeding January 1, 2027. The progressive implementation route will be defined by the National Commission of Minimum Wages (Conasami).
Recent Minimum Wage History
Constitutional Reform and Its Impact
In 2016, a constitutional reform detached the minimum wage as a reference for calculating obligations and penalties. This move paved the way for the historical increases that the basic remuneration has recently experienced.
With Andrés Manuel López Obrador’s arrival at the Presidency, a salary recovery policy was implemented, negotiating double-digit growth. This decision was supported by Mexico’s commitment in the T-MEC to improve labor force conditions.
Minimum Wage Growth (2018-2024)
Between 2018 and 2024, the minimum wage grew from 88.40 to 248.90 pesos per day, accumulating a 110% increase. In 2025, the minimum wage increased by 12%, reaching 278.80 pesos per day, marking a cumulative growth of 135% since 2018.
Key Questions and Answers
- Who is proposing the minimum wage increase? Senators from Movimiento Ciudadano (MC) are driving this initiative.
- What is the proposed increase percentage? The project aims for a 17% minimum wage increase by 2026.
- What is the role of Inegi in this proposal? Inegi measures the poverty line by income, which the proposed project seeks to ensure the minimum wage does not fall below.
- What is the ideal minimum wage standard according to MC? The ideal would be 3.3 times the poverty line by income, implying an 82% growth.
- How will the minimum wage increase be implemented? The proposed route is gradual, aiming to reach twice the poverty line by income value without exceeding January 1, 2027. Conasami will define this implementation plan.
