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On this Wednesday evening, the Council of Representatives of the National Commission on Minimum Wages (Conasami) decided that the minimum wage would increase by 15% by 2021. As a result, the daily minimum wage will rise from January 1st next year from 123.22 to 141.7 pesos per day. For the free zone of the northern border, the increase will rise from the current 185.56 Pesos to 213.19 Pesos.
The new amount of 141.7 pesos per day was determined based on the current salary of 123.22 pesos. Added to this was 10.46 pesos through the so-called Independent Recovery Amount (MIR). Later a 6% increase was applied.
On the other hand, the minimum wage for the free trade zone on the northern border will rise from 185.56 to 213.19 pesos per day in 2021. The number was defined after adding 15.75 pesos over MIR and applying a 6% increase.
“With this increase, Mexico climbs eight positions internationally in terms of the minimum wage to 76th place out of 135 countries. The goal of the current government is to achieve a position in the top 60 countries with the highest salary perception, ”Conasami said in a statement on his official Twitter account.
@Conasami agrees to raise the minimum wage by 15% by 2021. Https://t.co/PK1N65kiMv pic.twitter.com/rpjZH72iXy
– Conasami (@conasami) December 17, 2020
Two new professions are added
The addition of two new items to the list of professional minimum wages was also announced. The first corresponds to domestic workers “who have a 25% increase over the current minimum wage and reach pesos 154.03 per day. The others are farm workers whose wages will increase by 30% to 160.19 pesos, the Conasami statement said.
The 2021 minimum wage was unanimously approved
The government represented by Conasami and the labor sector voted in favor of the proposal. However, the eleven representatives from the employers' sector opposed the increase proposed by AMLO.
After the approval was announced, the Employers' Association of the Mexican Republic (Coparmex) posted a statement on its official Twitter account expressing its opposition to the ruling.
We were the driving force behind the historic rise in the minimum wage for Mexicans. Without consensus between the sectors and with the irrationality of economic management, prosperous development cannot be restored. #Conasami #ComunicadoCoparmex https://t.co/n2P3DwGBJa pic.twitter.com/wrvlDHJIzn
– National Coparmex (@Coparmex) December 17, 2020
This is the seventh time that full consensus has not been reached under the tripartite Council of Representatives. The previous ones were 1998, 1999, 2000, 2001, 2002 and 2012.
The corporate sector suggested another percentage
A few days ago, during his morning conference, President Andrés Manuel López Obrador proposed the increase of 15%, the third in his administration.
"It is fair and necessary to increase the minimum wage as much as possible," said AMLO in his morning speech on December 9th. "I just saw some graphs of the minimum wage in Mexico versus other countries, and it is." really a shame. In Latin America, it is the lowest minimum wage in Mexico, despite the increases over those two years, ”he added.
After the announcement, negotiations began with the corporate sector, which saw a lower value.
"We propose that the minimum wage in 2021 should be between 128.15 and 135.83 pesos, which would protect purchasing power without putting greater pressure on employment," said Gustavo de Hoyos, President of Coparmex, in a press conference . He said these numbers would imply "at least a 4% increase in line with inflation".
However, the government of López Obrador is trying to raise the minimum wage above the inflation rate to reverse inequality in Latin America's second largest economy. In 2019, the minimum wage in Mexico increased by 16% and in 2020 by 20%.