Mexico’s minimum wage was published on Dec 1, 2017 (a month earlier than usual) to $88.36 pesos per day; a 10% rise in the 2017 level of $80.04 pesos a day introduced on January 1st, 2017, and the second year in a row it has made above-inflation increases to the minimum salary. In 2016, Mexico’s minimum wage was $73.04 pesos a day.
In the past years, the minimum wage had been raised more-or-less in line with inflation, to avoid social issues and not cause an increase in prices and wages which would eventually have the most impact on the lower social classes. The government considered that the country has favorable economic conditions to consider this increase, regarding the great performance of the internal and external economic activity.
Looking forward, the experts estimate Minimum Wages in Mexico to stand at $ 88.36 for the next 12 months. In the long-term, the Mexico Minimum Daily Wage is projected to trend around $ 102.24 mexican pesos in 2020, according to the econometric models.
If the companies decided to increase the salary of their employees, which would increase the salary tax payments and the operational and administrative costs, some of the companies will tend to increase of the prices on their products and services.