Mexico Approves Minimum Wage for Tipped Workers

Mexico City — The Chamber of Deputies unanimously approved reforms to the Federal Labor Law, establishing a minimum wage for workers in hotels, bars, restaurants, sports facilities, entertainment venues, and gas stations who previously relied solely on tips as compensation. The bill will now advance to the Senate for further deliberation.

Key Provisions of the Reform

The amendments explicitly mandate that all workers must receive a wage no lower than the federal minimum wage or the professional minimum wage, prohibiting employers from substituting salaries with tips, commissions, or other non-guaranteed payments.

Pedro Haces, a deputy from the ruling Morena party, emphasized the reform’s intent:

“It clearly establishes that every worker must receive a salary that in no case can be less than the minimum wage or the professional minimum wage, and it cannot be replaced by commissions, tips, or other forms of compensation.”

Scope of the Issue

Citing data from the National Occupation and Employment Survey, proponents revealed that 1.7 million workers in these sectors currently lack a fixed salary, relying entirely on tips, piece-rate payments, or commissions. Additional statistics highlighted:

• 634,000 individuals worked as waitstaff in Q2 2024, with 67.4% in informal employment.
• Nearly 80,000 workers in restaurants, hospitality, and recreational services received non-salary income.
• 350,000 employees across 13,248 gas stations had no fixed wages.

Erubiel Alonso, a PRI deputy, underscored the reform’s goal:

“This seeks to formalize protections for millions of excluded workers, ensuring tips are a supplement to—not a replacement for—wages. It also prohibits employers from appropriating tips and mandates equitable distribution among staff.”

Additional Safeguards

The approved text includes provisions to:

• Exclude tips from social security contribution calculations.
• Prohibit employers from diverting tips for other purposes.
• Require tip distribution based on workers’ hours and roles.

Marcelo Torres of the PAN party clarified:

“Tips remain part of workers’ earnings but won’t factor into social security quotas. This precision provides clarity for both employees and employers, avoiding undue burdens.”

The bill passed with 446 votes in favor. If ratified by the Senate, it will mark a significant shift in labor protections for Mexico’s service-sector workforce.

The legislative changes follow broader debates over labor equity in Mexico’s informal economy, which employs nearly 60% of the workforce.