Senators from Morena and the PRD proposed raising the income “to guarantee a decent life for workers and their families” in Mexico.
Senators of Morena and the PRD proposed a series of measures this September 27 with the intention of raising the minimum wage to double in Mexico .
Presented by Miguel Ángel Mancera, coordinator of the PRD caucus, the Senate approved an appeal to the federal government to fix it from January 2019 a minimum wage in Mexico of 176.72 pesos nationwide, twice the current.
The call was also extended to the National Commission of Minimum Wages (Conasami).
The proposal calls for establishing the bases and elements to set a minimum wage of that amount – currently it is 88.36 pesos – to guarantee a decent life for the country’s workers and their families.
Mancera requested that his proposal is discussed with the consideration of an urgent resolution, which was approved and subsequently voted in favor.
In the gallery, the PRD argued that businessmen like the members of the Employers’ Confederation of the Mexican Republic (Coparmex), are supporting the increase to the minimum.
Meanwhile, the Morena group presented a package of reforms to create a subsidy that would increase the minimum wage to benefit 9 million workers .
The subsidy will be paid by the companies, who will be able to deduct said increase against the ISR or, even, against the VAT.
In the bill, Senator Ricardo Ahued explained that the measure, applicable as of January 2019, will consist of the employer paying six pesos per day in addition to the minimum wage to workers who receive up to a minimum wage.
That amount, he said, may be credited by the employer against the corresponding ISR and if it exceeds the amount, the surplus may be credited against VAT.
Therefore, he said, the amount of the subsidy will eventually be absorbed by the Government.
“The final economic impact of the subsidy will fall on the federal government, which will absorb its total cost through a decrease in the collection of taxes,” he said in the initiative.
According to the legislator, the increase will be called “Independent Amount of Recovery” and will not imply a nominal increase to the minimum wage, in order to avoid inflationary consequences.
“It does not impact on the increase of one of the factors of production such as labor since the employers do not directly absorb the economic impact of the increase,” he said.
After noting that this is an emerging measure, he explained that the subsidy for the leveling of wages should not be considered in the calculation of employer contributions of social benefits or any other labor benefit that is quantified based on salary.
The initiative, taken to the Chamber of Deputies, includes amendments to the VAT, IEPS, and Rights laws, as well as the issuance of the ISR Law, among others.
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