[co-author: Valeria Cutipa]
On December 1, 2021, the National Minimum Wage Commission (“CONASAMI” for the Spanish acronym) approved the general minimum wage in Mexico at $ 172.87 Mexican pesos per day and $ 260.34 per day in the free economic Zone of the northern border, effective January 1, 2022. According to the press release from CONASAMI, 16.90 US dollars were added to the current minimum wage through the so-called Independent Recovery Amount (MIR) and an increase of 9% was made. Therefore, the minimum wage for 2022 implies a global increase of 22%.
As a reminder, the municipalities of the Northern Border Free Economic Zone are: (i) Baja California Norte: Ensenada, Playas de Rosarito, Tijuana, Tecate and Mexicali; (ii) Sonora: San Luis Rio Colorado, Puerto Peñasco, General Plutarco Elias Calles, Caborca, Altar, Saric, Nogales, Santa Cruz, Cananea, Naco and Agua Prieta; (iii) Chihuahua: Janos, Ascension, Juarez, Praxedis G. Guerrero, Guadalupe, Coyame del Sotol, Ojinaga and Manuel Benavides; (iv) Coahuila: Ocampo, Acuña, Zaragoza, Jimenez, Piedras Negras, Nava, Guerrero and Hidalgo; (v) Nuevo Leon: Anahuac; and (vi) Tamaulipas: Nuevo Laredo, Guerrero, Mier, Miguel Aleman, Camargo, Gustavo Diaz Ordaz, Reynosa, Río Bravo, Valle Hermoso and Matamoros.
CONASAMI consists of representatives of (a) government, (b) employers and (c) employees who meet annually to discuss the minimum wage. Unlike last year, there was agreement between the three parties this year.
Employers should review and adjust their payroll practices to accommodate this new minimum wage increase, which may also affect benefits such as savings funds and grocery vouchers, depending on how these benefits have been agreed with workers and unions.