Mexico City, Mexico — President Claudia Sheinbaum has confirmed a 12% increase to Mexico’s minimum wage, effective January 1, 2026. The adjustment, announced during the Banking Convention in Nayarit, will raise daily wages to 312.25 pesos (approximately 9,367.5 pesos monthly) in most of the country and 470.46 pesos (14,113.8 pesos monthly) in the Northern Border Free Zone.
Breakdown of the Wage Increase
The new rates represent a continuation of the administration’s policy to align the minimum wage with the cost of living, targeting an eventual equivalence to 2.5 basic food baskets. The current 2025 minimum wage stands at 278.80 pesos daily for the general zone and 419.88 pesos in the northern border region.
Sheinbaum emphasized the progress made since 2018, stating:
"Mexico rose from the lowest to the sixth-highest minimum wage in Latin America between 2018 and 2025. This year’s increase is three times above inflation. The Fourth Transformation is delivering results."
Economic and Social Objectives
The government asserts that the raise aims to bolster purchasing power without triggering inflation. A constitutional reform to Article 123 now guarantees that the minimum wage cannot fall below inflation rates, ensuring automatic adjustments if price rises exceed projections.
Mexico’s current average monthly income has reached a historic high of 18,912 pesos, which officials argue demonstrates the policy’s effectiveness in improving household welfare.
Key Details
- Effective Date: January 1, 2026.
- General Zone Increase: 278.80 → 312.25 pesos/day.
- Northern Border Zone Increase: 419.88 → 470.46 pesos/day.
- Inflation Safeguard: Automatic adjustments if inflation surpasses targets.
The administration plans similar annual increases throughout Sheinbaum’s six-year term to prevent wage stagnation.
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