By Reuters Staff
(Adds comment by analyst)
MEXICO CITY, Dec 16 (Reuters) - Mexico is to hike the daily minimum wage for workers by 15% next year, in a move that is likely to stoke fears of inflation after President Andres Manuel Lopez Obrador’s government delivered a 20% rise in the minimum salary this year.
Leftist leader Lopez Obrador, who has vowed to prioritize the poor in a country with huge wealth disparity, has said the previous minimum salaries were shameful.
He has sought to reverse a decades-long slide in workers’ purchasing power that left many Mexicans impoverished. But the low wages also attracted foreign companies, especially from the United States and Canada.
Business representatives argued that the timing is not good
Published on Thursday, December 17, 2020
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Mexico’s daily minimum wage will increase 15% to 141.7 pesos (US $7.15) on January 1 after the National Minimum Wage Commission (Conasami) approved the hike on Wednesday.
Members of the federal government and the labor sector voted in favor of increasing the daily wage 18.5 pesos (US $0.93) from its current level of 123.2 but business sector representatives opposed the hike.
The daily minimum wage will also increase 15% in the northern border free zone, rising to 213.4 pesos (US $10.76) from 185.6.
Approval of the increase came a week after President López Obrador described the current minimum wage as an “embarrassment” and recommended raising it at least 15%. The new hike follows a 20% increase at the start of this year and a 16% rise at the beginning of 2019. In just over two weeks, the daily wage will be 60% higher than when López Obrador took office in la
By Reuters Staff
1 Min Read
MEXICO CITY, Dec 16 (Reuters) - Mexico’s National Minimum Wage Commission (CONASAMI) on Wednesday approved a 15% rise in the daily minimum wage for workers, the government said in a statement.
The daily minimum salary is set to be increased to 141.70 pesos ($7.15) from 123.22 pesos currently, while in the special economic areas near the border with the United States the minimum salaries will rise to 213.39 pesos. ($1 = 19.8320 Mexican pesos) (Reporting by Sharay Angulo and Abraham Gonzalez, writing by Drazen Jorgic; Editing by Himani Sarkar)
By Reuters Staff
(Adds comment by analyst)
MEXICO CITY, Dec 16 (Reuters) - Mexico is to hike the daily minimum wage for workers by 15% next year, in a move that is likely to stoke fears of inflation after President Andres Manuel Lopez Obrador’s government delivered a 20% rise in the minimum salary this year.
Leftist leader Lopez Obrador, who has vowed to prioritize the poor in a country with huge wealth disparity, has said the previous minimum salaries were shameful.
He has sought to reverse a decades-long slide in workers’ purchasing power that left many Mexicans impoverished. But the low wages also attracted foreign companies, especially from the United States and Canada.
The National Minimum Wage Act increases the number of unemployed in the country. The National Minimum Wage Commission, which was formed by legislation, turns a blind eye to the negative effect of the wage on the unemployed.
It goes even further than the politicians to make life hell on earth for the unemployed and domestic workers, as well as small businesses and their employees.
As they learn about the compulsory increases, all people who will be made worse off because of the minimum wage will be saying, “Why don’t you just leave us alone?” Among them will be those who will not get jobs because of the higher minimum wage; those who will not be able to employ more people if their businesses start growing; those who will have no option but to let staff members go because they cannot afford to pay higher wages; and mothers, especially single mothers, who hire young women to look after their children while they are at work.