Origins and Early Development
The general minimum wage in Mexico will be 9,582.47 pesos per month starting January 1, 2026, marking 111 years of this labor right.
Before becoming a constitutional right, Álvaro Obregón, then a general in the Operations Army, issued a decree on April 9, 1915, establishing the first minimum wage in Mexico. This decree was exclusively for day laborers.
The decree set the minimum wage for day laborers at 75 centavos, which would be equivalent to approximately 46 pesos today, according to calculations by the National Commission of Minimum Wages (Conasami).
During the ongoing Revolution, this minimum wage decree only applied to four states: Michoacán, Querétaro, Hidalgo, and Guanajuato. As the Operations Army gained control over more regions, the minimum wage for day laborers gradually spread across the country.
Constitutional Recognition
Two years later, in 1917, the Constitution was promulgated, and Article 123, concerning work, enshrined the minimum wage as a right for working individuals.
At that time, the minimum wage was not nationally established; instead, each municipality had a special commission subordinate to the Labor Conciliation Board to create local legislation.
The implementation of the minimum wage was slow and accident-prone, as local legislations were unevenly established. In this context, the first Federal Labor Law was promulgated in 1931.
The federal legislation ordered the establishment of a minimum wage by the end of 1932. Only 197 out of 2,644 municipalities at that time determined a minimum wage.
It wasn’t until 1934 that President Abelardo Rodríguez set a minimum wage for all states in the country. The amount was 1.27 pesos per day, equivalent to approximately 135 pesos today. The goal was for it to progressively increase until reaching 4 pesos per day, equivalent to 425 pesos today.
Minimum Wage Fluctuations and the Creation of Conasami
Alongside improvements in basic income, the National Commission of Minimum Wages (Conasami) emerged to coordinate 111 regional commissions for setting minimum wages starting in 1963.
The minimum wage began to lose purchasing power from 1977 when inflation reached historical highs. During Miguel de la Madrid’s administration from 1982 to 1988, basic remuneration lost 60% of its purchasing power, according to Conasami calculations.
From 1987 onwards, the responsibility for setting amounts fell to Conasami, as regional commissions were dissolved.
By 1999, the loss of purchasing power reached its peak, as the minimum wage had lost 75% of its value compared to 1976, equivalent to 100 pesos today.
The reference salary no longer covered the basic needs of a family, and those who received it faced precarity. Starting in 2018, the federal government initiated a policy to recover the minimum wage.
This policy led to double-digit increases: 20% in 2020, 15% in 2021, 22% in 2022, 20% in 2023 and 2024, 12% in 2025, and 13% in 2026.
The objective of this policy is for the general minimum wage to enable the purchase of 2.5 basic food baskets by 2030.
Key Questions and Answers
- What was the first minimum wage in Mexico, and who established it? The initial minimum wage in Mexico was set at 75 centavos for day laborers, established by General Álvaro Obregón through a decree in 1915.
- When did the minimum wage become a constitutional right? The Mexican Constitution of 1917 enshrined the minimum wage as a right for working individuals in Article 123.
- How was the minimum wage initially implemented? The minimum wage was initially implemented unevenly across municipalities, with each having a special commission to create local legislation.
- What factors led to the loss of purchasing power of the minimum wage? Factors such as high inflation rates, particularly from 1977 onwards, and the dissolution of regional commissions in 1987 contributed to the loss of purchasing power.
- What is the current policy to recover the minimum wage in Mexico? Since 2018, the federal government has implemented a policy of double-digit increases to restore the minimum wage’s purchasing power, aiming for it to cover 2.5 basic food baskets by 2030.
