Mexico’s minimum wage increase boosts border incomes, but adds new uncertainty for regional employers

Mexico’s minimum wage will rise again on Jan. 1, delivering higher earnings for millions of workers and pushing wages in the Northern Border Free Trade Zone closer to U.S. regional benchmarks. But business leaders along the border say the increase also adds new pressures at a time when operating costs are already rising.

President Claudia Sheinbaum announced that the general minimum wage will climb from 278 pesos to 315 or about $16.40 to $18.50 per day. The increase is expected to benefit an estimated 8.5 million workers. 

In the border zone, where different federal wage rules apply, the daily minimum will rise from 419 pesos to 440, or about $24.70 to $25.90. With the change, the monthly minimum wage throughout most of the nation will be 9,582 pesos, or about $563. In the border region, that wage will be about 13,409 pesos, or about $789, per month. 

The wage adjustment follows negotiations between the business sector, labor unions, and the federal government. Data from Comisión Nacional de los Salarios Mínimos (CONASAMI), or Mexico’s National Minimum Wage Commission, and Banxico show Mexico’s minimum wage has tripled since 2018 and risen about 130% in real buying power.