Mexico's Minimum Wage to Rise 20% in 2024

Mexico's minimum wage will experience a substantial increase of 20% in 2024, marking the sixth consecutive year of double-digit raises. The agreement, reached between business, government, and labor groups, aims to improve the livelihoods of workers across the country.

According to the National Minimum Wage Commission, the daily minimum wage will surge to 248.93 pesos ($14.50) from its previous amount of 207.44 pesos in 2023. For individuals residing along the northern border with the U.S., the wage will rise to 374.89 pesos instead of 312.41 pesos.

President Andrés Manuel López Obrador expressed his satisfaction with this development, stating, "This means we are going to fulfill what we offered at the start of our government to double the minimum wage in real terms, which hasn't happened in 50 years." López Obrador's term as President will conclude on September 30, 2024.

Since López Obrador assumed office in December 2018, the minimum wage has more than doubled in most parts of the country and more than tripled along the northern border, when adjusted for inflation. This notable increase has already begun to impact overall wages and is expected to have a positive effect on the labor market, as stated by analysts at Grupo Financiero Banorte. Their report indicates that these changes align with their expectations, leading them to hold the view that inflation will close at 4.6% by the end of 2024.

In addition to boosting wages, these increases, along with record remittances from Mexicans living in the U.S., have stimulated household consumption and driven higher-than-anticipated economic growth this year. As evidence of this positive trend, the Bank of Mexico recently revised its growth forecast for 2023 from 3% to 3.3% and for the following year from 2.1% to 3%.

The rise in Mexico's minimum wage signifies an important step towards improving living standards and fostering economic growth in the country.