How Much is the Minimum Wage in Mexico for 2026?

As of January 1, 2024, the minimum wage in Mexico was set at 248.93 pesos per day, which is equivalent to 7,468 pesos per month and approximately 440 US dollars per month.

This ranking places the country fourth among Latin American countries, according to Statista, underscoring its standing in the region’s economic context.

Thanks to the approval by the National Commission for Minimum Wages (CONASAMI), the minimum wage in Mexico has increased by 110% between 2018 and 2025. This figure reflects a government effort to improve the economic conditions of employees throughout Mexico, including Mexico City. 

What is the Minimum Wage or Salary?

According to Article 90 of the Federal Labor Law, the minimum wage in Mexico is the minimum amount that an employer may legally pay an employee for their services.

This article establishes that “the minimum wage must be sufficient to satisfy the normal needs of a head of family in the material, social and cultural order, and to provide for the compulsory education of children.”

It is worth mentioning that there are several types of minimum wages, which are: 

• General minimum wage: This is the lowest amount that an employer can legally pay a worker for their services in most regions of the country. This figure guarantees a minimum income standard for employees and promotes the protection of their labor rights.
• Professional minimum wage: This wage applies to certain specialized jobs where the required skills and abilities are particularly in demand within a specific industry.
• Minimum wage in the Northern Border Free Trade Zone (ZLFN): This geographic area includes municipalities along the border with the United States and has a minimum wage that differs from that of the rest of the country. Its objective is to adjust to the economic particularities of this area. 

Who Determines the Value of the Minimum Wage in Mexico?

The different institutions and entities involved in this decision are: 

• The Council of Representatives of the National Commission: made up of representatives of the labor, employer, and government sectors. Its main task is to propose and discuss adjustments to the minimum wage, taking into account the country’s economic and social conditions.
• The National Council for the Evaluation of Social Development Policy (CONEVAL) does not directly set the minimum wage, but it plays a very important role, as it evaluates the sufficiency of that wage relative to the basic needs of the population.
• The National Commission on Minimum Wages (CONASAMI) sets the country’s general and professional minimum wages, based on the recommendations of the aforementioned councils. Its objective is to balance the interests of workers and employers. 

How Does the Increase in the Minimum Wage Impact?

The increase in the minimum wage reflects the value of work in Mexico and influences the economy and quality of life of many people. However, it also has a significant impact on more dimensions:  

• Social Security: The Mexican Social Security Institute (IMSS) adjusts contributions and benefits in accordance with salary increases. In this way, greater social protection is guaranteed for the workforce. 
• Employee well-being: higher wages increase employees’ purchasing power. This allows them to cover their basic needs more effectively, improving their quality of life. 
• Poverty reduction: According to Coneval, 5.1 million people were lifted out of poverty thanks to salary increases between 2018 and 2022. This translates into a significant reduction in poverty in the country.
• Labor aspect: The establishment of the Independent Recovery Amount (MIR) guarantees fair and safe working conditions for all workers. This promotes a fairer and more dignified work environment for all workers. 

Also Read: The Minimum Wage in Switzerland

What is the Independent Recovery Amount (MIR)?

The MIR is a nominal salary increase implemented in 2017 to restore the purchasing power of minimum wages. 

The MIR should not be used as a reference to set other current salaries, such as contractual, federal, state, or municipal salaries, and should be added to the current minimum wage. This year, the amount is 41.26 pesos for the Northern Border Free Zone (ZLFN) and 27.40 pesos for the rest of the country, representing a 6% increase.

Minimum wages are just a fixed base, which companies can always exceed to ensure fair and competitive remuneration. As a leading employee benefits platform, you can give your employees the best to boost their productivity.