Mexico has the highest minimum wage increase

Mexico has the highest minimum wage increase

MEXICO - The Organization for Economic Co-operation and Development (OECD) highlighted the increase in nominal minimum wages in Mexico between May 2019 and last May, and indicated that it was among the highest in the entire organization at 142%.

In addition, during the same period, real minimum wages increased by 86.6%, making Mexico the country with the highest real minimum wage increase since pre-pandemic levels in the entire organization.

The agency noted that compared to most OECD countries, Mexico has shown a remarkable wage recovery, as real wages increased 5.4% between the fourth quarter of 2019 and the first quarter of 2024.

This increase contrasts with the trend in other North American countries, where real wages experienced a decrease of 2.4% and 0.8% in Canada and the United States, respectively.

The OECD stated in a document that the steady increase in nominal and real minimum wages can be attributed to federal legislation requiring an annual review. This legislation seeks to align the minimum wage with inflation and prevent the erosion of workers' purchasing power.

In this regard and following an agreement reached within the National Minimum Wage Commission (Conasami), a 20% increase in the minimum wage was set for 2024 in relation to 2023.

The OECD also highlighted that following a reform to the Federal Labor Law in December 2023, the legal framework regulating work-related diseases now incorporates 88 new health conditions, including work-induced stress, work-related cancers or diseases related to women's health, for example, endometriosis.