Minimum Wage Increase in 2026: Key Details
The general minimum wage will see a 13% adjustment in 2026, raising it from 278.80 to 315.04 pesos per daily shift. This increase will make the minimum wage equivalent to two basic food baskets.
For the Zona Libre de la Frontera Norte (ZLFN), comprising 43 municipalities, the minimum wage will rise from 419.88 to 440.87 pesos per day, marking a 5% annual increase.
Who Determines Minimum Wage Increases?
Minimum wage adjustments are not unilateral; they result from a tripartite agreement by the Comisión Nacional de Salarios Mínimos (Conasami). This council consists of union and employer association representatives, along with the Conasami president.
Each year, around late November, the council convenes to negotiate the following year’s minimum wage increase. Since 2016, adjustments have consisted of a percentage aligned with inflation and the Monto Independiente de Recuperación (MIR), an amount in pesos aimed at preventing the ripple effect on other remunerations, such as contractual revisions.
How Much Has the Minimum Wage Grown?
Between 2018 and 2026, the minimum wage has experienced a 154% recovery of its purchasing power, according to Conasami.
Throughout the current six-year term, the basic remuneration will continue to increase by double digits to reach the target set by President Sheinbaum.
Why Has the Minimum Wage Grown So Much?
Beyond the salary recovery policy initiated in the previous administration, in 2016, the minimum wage was indexed as a reference for sanctions and other obligations. This action was crucial in enabling the minimum wage to receive adjustments above inflation rates.
When this remuneration was tied to fulfilling obligations, it prevented improvement as the increase would be proportional to sanction amounts, pensions, and others.
As part of this constitutional reform, the Unidad de Medida y Actualización (UMA) was created. Its amount is defined by the Instituto Nacional de Estadística y Geografía (Inegi) and serves as the calculation basis for all obligations previously linked to the minimum wage.
Are There Risks If Minimum Wage Increases Continue?
AON estimates that if the current trend continues, the minimum wage could reach the level of professional salaries in the formal labor market by 2028, as these remunerations do not adjust at the same pace.
This scenario could present challenges for company salary structures, including greater difficulty in attracting and retaining talent due to increasingly homogeneous economic offers, primarily at the operational level.
Additionally, Banamex experts have warned that the basic remuneration is at a point where, without accompanying upcoming adjustments with other measures, adverse effects on the labor market could occur, such as increased difficulty in creating formal jobs.
Key Questions and Answers
- Who decides minimum wage adjustments? The Comisión Nacional de Salarios Mínimos (Conasami), a tripartite council consisting of union and employer association representatives along with the Conasami president, determines minimum wage adjustments.
- How much has the minimum wage grown since 2018? The minimum wage has experienced a 154% recovery of its purchasing power between 2018 and 2026, according to Conasami.
- Why has the minimum wage grown so much? The minimum wage was indexed in 2016 as a reference for sanctions and other obligations, enabling it to receive adjustments above inflation rates. The creation of the Unidad de Medida y Actualización (UMA) also played a role in this growth.
- Are there risks if minimum wage increases continue? Continued minimum wage increases could lead to challenges for company salary structures and potentially create adverse effects on the labor market, such as increased difficulty in creating formal jobs.
