Global Compliance Desk – Mexico

Mexico’s Daily General Minimum Wage Slated to Increase Effective January 1, 2019

On 20 September 2018, Senate members unanimously ratified Convention No. 98 of the International Labor Organization (ILO), which grants the right to organize and bargain collectively, rights already adopted in the Mexican constitution.

The United States, Mexico, and Canada have signed the United States-Mexico-Canada Agreement (USMCA) on 30 November 2018. The USMCA will replace the North American Free Trade Agreement (NAFTA) that regulates North America ‘s trade. Before it can take effect, the USMCA must be ratified by legislative bodies in those governments. Chapter 23 on labor code and Annex 23-A on collective bargaining are the first to include these subjects in a major trade agreement.

A resolution decreeing an increase in the Daily General Minimum Wage (DGMW) for Mexico was issued by the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI). In addition, CONASAMI has established a different and higher minimum wage for states and towns along the northern border of Mexico in order to promote work in these areas and to avoid the drainage of the labor pool, particularly in the United States and Canada.

CONASAMI approved a 16.2 percent increase, leaving the final DGMW of $ 102.68 MXP (approximately $ 5 USD per day) as of January 2019. In addition, CONASAMI has established a special DGMW for states and towns along the northern border of Mexico, which amounts to $ 176.72MXP.

The above increase is expected to be published in the Federation’s Official Gazette (Diario Oficial de la Federación).

The 16.2 percent increase may serve as a general guideline for the revision of higher salaries in collective bargaining agreements applicable to Mexican companies as well as for benefits increased to a minimum wage. Employers may, however, want to analyze each particular case independently.

Sajid Mir
ABOUT THE AUTHOR
Sajid Mir
A labor and employment lawyer at Replicon who specializes in global compliance. Replicon provides award-winning products that make it easy to manage your workforce. Replicon is an industry leader in global compliance and has a dedicated team which pro-actively monitors international labor regulations for ensuring proper adherence with specific country rule requirements.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Global Compliance Update – Canada

New Rules for Federally Regulated Employers Canadian Parliament has introduced various changes in Bill C-86 (the Budget Implementation Act, 2018, No. 2) which gained royal assent last month.  These new…Read More

Global Compliance Desk – Alberta, Canada

Proposed Changes in Overtime Pay and Holiday Pay BILL:2 On May 27, 2019, Alberta’s newly elected United Conservative Party introduced the Open for Business Act (“Bill 2”). If passed, Bill…Read More

How Organizations are Transforming Time & Attendance Processes

Corporate Compliance Insights | June 05, 2019 By Lakshmi Raj, Co-Founder and Co-CEO, Replicon All functions of the organization are looking to streamline and transform. As Lakshmi Raj of Replicon…Read More

Using shared services? These five technologies are a must

As organizations continue to scrutinize operating costs and look for areas to drive efficiencies, shared services centers (SSCs) are a no-brainer. The concept of a multi-function SSC has been around…Read More

Miscalculating wages by a few cents led to this company paying a six-figure lawsuit

West Marine Products, which operates a chain of retail stores across the United States specializing in boating supply and fishing equipment, recently settled a class action lawsuit involving 707 former…Read More

Employee time tracking is dead

iBeacons, Bluetooth Low Energy, Proximity sensing and the obsolescence of time tracking as we know it. Businesses have to track the time their employees work for a variety of reasons,…Read More
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates
  • Chat with us
    How can we help you?