Mexico is increasing its minimum wage by 15% starting Jan

17/18/2020

Source: Al Jazeera

The Mexican government announced the country’s daily minimum wage will rise by 15 percent in January to the equivalent of about $7 a day.

The new wage still amounts to less than $1 an hour. But the increase is well above the country’s current 3.3 percent inflation rate.

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Mexico’s Pro-Business Candidate Wants to Double Minimum Wage

02/22/2018 Bloomberg

anayaPresidential candidate Ricardo Anaya is pledging to more than double Mexico’s minimum wage as he looks to extend a rally in his support that’s put him within striking distance of the leftist front-runner in this year’s election.

Hailing from the business-friendly National Action Party, Anaya appears willing to defy his conservative supporters to raise one of Latin America’s lowest minimum wages. Anaya is even willing to make Mexico one of the first countries to introduce a universal basic income, said Salomon Chertorivski, his economic adviser and platform coordinator.

Minimum wage “should aspire to reach the poverty line within Ricardo Anaya’s six-year term which today is about 190 pesos per day for an adult and one dependent,” said Chertorivski, who spoke from his new office in Mexico City.

 

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Mexico’s lower house votes to change minimum wage calculations

11/16/2015 Vallarta Daily via Reuters

MEXICO CONGRESSA committee in Mexico’s lower house of Congress voted overwhelmingly in favor of a measure that moves Latin America’s No. 2 economy a step closer to increasing its low minimum wage, which has fallen in real terms over more than three decades.

The measure, which would decouple the minimum wage from how some fines, levies and contributions are calculated, is part of President Enrique Pena Nieto’s bid to boost economic growth and the purchasing power of low-income Mexicans.

The current daily minimum wage in Mexico is 70.10 pesos ($4.19), placing it below most of its peers in Latin America and dead last among the 34-country Organization for Economic Cooperation and Development.

The minimum wage is now used as a benchmark for a host of other prices, including fines, worker contributions for subsidized home loans and public financing for political parties, meaning any measures to raise it would have repercussions far beyond labor markets.

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Mexico Looks to Raise Wages

08/28/14 The Wall Street Journal

Pesos by Flickr user AleiexMexico is attracting record levels of foreign investment, boasts a stable economy, and is becoming an export powerhouse in areas like cars and aerospace. But when it comes to one economic measure—its minimum wage—the country lags behind only Haiti in the hemisphere.

Pressure is rising on the federal government to change that.

On Thursday, Mexico City’s leftist Mayor Miguel Ángel Mancera proposed to lift the federal minimum wage to 82.86 pesos a day ($6.33) for 2015, a 23% increase from the current 67 pesos ($5.12) in Mexico City and enough to buy a basic basket of foods.

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Mexico Debates Boosting Its Low Minimum Wage

08/28/14 The Wall Street Journal

peso by Guanatos GwynMexico is attracting record levels of foreign investment, boasts a stable economy and is becoming an export powerhouse in areas like cars and aerospace. But when it comes to one economic measure—its minimum wage—the country lags behind only Haiti in the hemisphere.

That may soon change. On Thursday, Mexico City’s leftist Mayor Miguel Ángel Mancera submitted a bill to Congress seeking to lift the federal minimum wage to 82.86 pesos a day ($6) for 2015, a 23% increase from the current 67 pesos in Mexico City and enough to buy a basic basket of foods.

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Minimum-wage debate roils Mexico

08/26/14 McClatchy DC

piggy bank with coinsMexico has the 14th largest economy in the world, a humming manufacturing sector, a newly opened energy sector that’s drawing worldwide interest and, at $144 a month, likely the lowest minimum wage in Latin America.

“It’s ridiculously low,” said Jonathan Heath, an independent economist.

Mexico’s minimum wage: Stingy by any measure

08/16/14 The Economist

piggy bank with coinsBASILIO GONZÁLEZ is an unusually well-paid Mexican public servant. The 70-year-old’s total pay this year will be 2.8m pesos ($213,000). That is ironic, considering that for 23 years he has been president of the National Minimum Salary Commission. During that time the minimum wage has dropped by 43% after accounting for inflation, according to the Economic Commission for Latin America and the Caribbean (ECLAC), a part of the United Nations. It varies by region but currently averages 66 pesos a day. At that rate, a recipient would have to work every day for 116 years to earn what Mr González will make this year.

Does Mr González deserve his generous haul? Judging by the length of his tenure, Mexican authorities appear to think so. Even before he took office, wage suppression had been an essential part of Mexico’s successful anti-inflation drive. Since 1991, annual inflation has fallen from more than 22% to less than 4%.

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