The first half of January marks a key moment for thousands of workers in Baja California Sur, as paychecks begin to reflect the new minimum wage approved for 2026. The 13 percent increase took effect on January 1, coinciding with rising prices for basic goods and services.
Beginning January 15, workers earning the minimum wage will see the adjustment in their biweekly income. In the General Minimum Wage Zone, which includes Baja California Sur, the daily wage increased from 278.80 pesos to 315.04 pesos, an increase that directly affects those who rely on this income to cover essential expenses.
A survey conducted among residents of La Paz found mixed perceptions about the real impact of the increase. Opinions varied among minimum-wage earners and business owners, many of whom noted that higher wages often bring indirect effects, including price increases and higher operating costs.
Flor Cota, a cleaning worker in the state capital, said the increase does not necessarily translate into a better quality of life. She noted that higher wages are quickly offset by rising fuel and food prices, particularly in a geographically isolated state such as Baja California Sur, where most goods must be transported from outside.
Business owners also expressed concern about rising costs. Manuel, the owner of a tortilla shop in La Paz with five employees, said the wage increase forces businesses to adjust their cost structures, often leading to higher prices for consumers. He explained that suppliers have already raised prices more sharply than in previous years, leaving small businesses with little choice but to pass on those increases to maintain profitability.
Independent professionals face similar challenges. Erandini Ramírez, a dentist in private practice, said that while the minimum wage increase does not directly affect her business, she regularly experiences price hikes in supplies and external services at the start of each year. To avoid losing patients, she tries to stock up in advance and maintain stable prices, despite higher operating costs.
Several residents also pointed out that the wage increase does not have the same effect on those working in the informal sector, which remains a significant part of the local economy. According to the National Survey of Occupation and Employment, Baja California Sur recorded 179,000 informal workers in the third quarter of 2025, representing 39.1 percent of the employed population. This marked an increase of 13,000 people compared to the same period in 2024.
Informal employment includes unregistered microbusinesses, self-employed workers in subsistence activities, and laborers without social security benefits. For this segment of the workforce, national wage increases often do not translate into higher or more stable income.
The wage adjustment also coincided with new tax increases that have impacted consumer prices. The Special Tax on Production and Services was raised on sugary drinks, increasing the tax per liter of soda from 1.64 pesos to 3.84 pesos. Diet drinks also saw a tax increase of 1.5 pesos per liter. Cigarettes were hit with a 200 percent increase in the same tax, directly affecting retail prices.
Fuel prices have also been affected by higher taxes. The IEPS on Magna gasoline rose from 6.45 to 6.70 pesos per liter, Premium from 5.45 to 5.64 pesos, and diesel from 7.09 to 7.36 pesos per liter. In January, average fuel prices in Baja California Sur reached 22.80 pesos per liter for Magna, 24.86 for Premium, and 24.15 for diesel.
These increases directly affect transportation and distribution costs for basic goods, adding further pressure to household budgets. The cost of the basic food basket has also remained high. According to the Federal Consumer Protection Agency’s Who’s Who in Prices report, the most expensive basket in La Paz was recorded at a Ley supermarket, with an average price of 853.12 pesos, while the lowest was found at Soriana Híper at 804.50 pesos.
The basket monitored by Profeco includes 24 essential items, such as rice, cooking oil, meat, eggs, milk, tortillas, fruits, vegetables, and hygiene products, in standardized quantities.
In response to what is commonly known as the January financial strain, Profeco issued recommendations to help families manage expenses. These include planning purchases with budgets and lists, prioritizing essential needs, comparing prices, limiting the use of credit, and reviewing outstanding debts.
The agency also encouraged consumers to strengthen financial education and adopt more responsible spending habits, noting that periods of financial pressure can serve as an opportunity to reassess consumption patterns and make better use of household income.
