President Claudia Sheinbaum confirmed that the minimum wage will increase by 12% starting January 1, 2026.
Under the new rates, workers will earn $312.25 pesos per day in most of the country and $470.46 pesos along the northern border, approximately $17 and $25 USD, respectively.
The hike is part of Sheinbaum’s broader policy to ensure the minimum wage equals the cost of 2.5 basic food baskets. Currently, it covers 1.8 baskets.
At the Banking Convention in Nayarit, government officials announced the new minimum wage will translate to monthly earnings of $9,367 to $14,113 pesos (roughly $504 to $760 USD), depending on the region.
Sheinbaum emphasized that the increase aims to boost purchasing power without fueling inflation. “The minimum wage in Mexico must reflect real progress in workers’ living conditions,” she said.
The government maintains the raise poses no economic risk, framing it as a strategy to support development and job stability.
A recent reform to Article 123 of the Constitution mandates that the minimum wage cannot fall below the inflation rate. If inflation exceeds projections from the Bank of Mexico, adjustments will be made to preserve the wage’s real value.
Mexico’s average monthly income now stands at $18,912 pesos ($1,019 USD), the highest in recent history. Officials argue that sustained minimum wage increases, aligned with inflation, are key to improving household well-being.
The administration plans to continue annual raises throughout Sheinbaum’s six-year term. “Since 2018, the purchasing power of the minimum wage has increased by 125%,” she noted. “If we continue with 12% annual increases and inflation remains controlled, we will reach the 2.5 basket goal by 2030.”
However, some economists warn the announcement comes amid signs of economic strain. Banxico recently downgraded GDP growth projections to just 0.2%, and formal employment growth is at its lowest in 16 years.