Mexico Approves 13% Minimum Wage Increase for 2026

  • December 16, 2025

President Claudia Sheinbaum Pardo announced that Mexico will raise its general minimum wage to 315.04 pesos per day beginning January 1, 2026, marking a 13 percent increase supported by employers, workers, and the federal government. She explained that the agreement, reviewed by financial authorities, aims to restore lost purchasing power without raising inflation.

The increase lifts the minimum monthly income to 9,582.47 pesos, while wages in the Northern Border Free Zone will grow to 440.87 pesos per day, or 13,409.80 pesos per month. Sheinbaum explained that workers should ultimately be able to afford 2.5 basic food baskets, and the 2026 adjustment will raise coverage to 1.8, building momentum toward the goal.

Alongside wage growth, she announced that Mexico will begin gradually reducing the workweek during her term. Businesses will make changes in 2026 so that in 2027 the limit becomes 46 hours per week, eventually arriving at 40 hours in 2030. She said the consensus reflects a direct investment in productivity and quality of life.

The president pointed to reforms introduced since the administration of Andrés Manuel López Obrador, including increased pensions, improved vacation benefits, lower retirement fund commissions, and the elimination of outsourcing. Lower prices for basic goods under PACIC and capped gasoline costs have contributed to lifting 13.5 million people out of poverty. She framed these policies as proof that shared prosperity must prioritize those with fewer resources.

Labor Secretary Marath Baruch Bolaños López said the new wage level represents a strong recovery in purchasing power, while the shorter workweek will be protected in the Constitution and Federal Labor Law, without reducing salaries or benefits. The reform is expected to benefit 13.4 million people who currently work more than 40 hours per week.

Business leaders praised the agreement process, and labor organizations called it another milestone in advancing social justice for workers.

President Sheinbaum concluded by affirming her commitment to maintaining a foundation of consensus for all agreements in the world of work, guaranteeing continued investments, reasonable profits for companies, and ever-increasing benefits for all workers. https://banderasnews.com/

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