Millions of Workers to Get a Pay Raise as Minimum Wage Increases

President Claudia Sheinbaum has announced a 13 percent increase in Mexico’s general minimum wage, effective January 1, 2026. The new rate will rise to 9,582.47 pesos per month, about $518 USD.

“This is very good news for all Mexicans,” Sheinbaum said during her morning press conference. “This agreement was reached by consensus between the business sector and workers. This increase has no impact on inflation or the cost of goods.”

Labor Secretary Marath Bolaños highlighted that the increase continues a trend of wage growth above inflation. “One of our goals, which is also a constitutional mandate, is to ensure the minimum wage reaches 2.5 times the cost of the basic food basket,” he said.

Under the new adjustment, the daily minimum wage will rise from 278.80 pesos ($15 USD) to 315.04 pesos ($17 USD) nationwide. In the Northern Border Free Zone, wages will increase by five percent, from 419.88 pesos ($23 USD) to 440.87 pesos ($24 USD) per day, equivalent to 13,409.80 pesos ($725 USD) per month.

“We are very pleased,” Bolaños added. “By the beginning of next year, the minimum wage will have recovered 154.2 percent of its purchasing power compared to the period before the government’s reforms.”

Francisco Cervantes, president of the Business Coordinating Council, commended the collaboration between the government, workers, and employers. “All parties have shown openness to negotiating conditions that benefit different population groups, especially the most vulnerable,” he said.

Cervantes noted that the tripartite negotiations were conducted “within the legal framework, in accordance with the rule of law, and with respect for the fundamental values that underpin Mexico’s economy; formal employment, workers’ rights, productive stability, legal certainty, efficiency, and business development.”

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Sara Aguilar
Sara, born in Mexico City, holds diplomas in cultural history, ESL instruction and broadcasting. She joined the Gringo Gazette in 2005, contributing stories on culture, history and news. She also paints in watercolor and occasionally writes under pen names.
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