Mexicos minimum wage will increase by 20%; reaches 123 pesos a day

The minimum wage for the North Border Free Zone will increase from 176.72 pesos to 185.56 pesos per day from January 1, 2020.

The minimum wage it will have an increase of 20 percent by 2020, with what would go from 102.68 pesos to 123.22 pesos a day from January 1 of next year, sources close to the National Minimum Wages Commission confirmed to MILENIO ( Conasami )

During the presentation of the increase in the minimum wage for 2020, Luisa María Alcalde, secretary of Labor, indicated that the increase in the minimum wage that occurred during the administration of President López Obrador brought 1.23 million Mexicans out of wage poverty this year.

He explained that this year, after the implementation of the new minimum wage policy, inflation not only has not skyrocketed but has been among the lowest in the last four years, which breaks the myth with which it used to justify the stagnation of the purchasing power of workers.

“The greatest proof that the increase in the minimum wage had no inflationary effect is that in the main cities of the free zone of the northern border, where the minimum wage was doubled, lower inflation rates were observed than in the rest of the country, “explained Mayor Luján .

The head of the Ministry of Labor He said that the increase in the minimum wage had an impact on the average salary of those affiliated with the Mexican Social Security Institute ( IMSS ) where it increased by 4.6 percent and 8.5 percent at the border in real terms.

He said that 10 percent of the workers who earn less since their income increased by about 72 percent in the free zone of the northern border and 8.5 percent of the country.

Meanwhile, Carlos Salazar Lomelín, president of the Business Coordinating Council ( CCE ), said that with the increase in the minimum wage in 2020, Mexican workers will exceed the individual welfare line; However, he said, that is not the objective of entrepreneurs, but to achieve family welfare.

“We do not want to stay in the individual welfare, we want to move to the welfare of families and for this, we have made an agreement with the entire worker’s sector … we will make constant efforts to address now not only the line of individual welfare, which with We have already reached this increase, according to Coneval, reaching the minimum welfare line of the families of Mexican workers, “he said.

He added that the private sector seeks that at least families reach an income of 6,500 pesos per month and, meanwhile, the workers promised to increase their productivity.

“If we achieve this goal we will have at least Mexican families with at least 6,500 pesos of salary per month, this is the place we want to be, it is the place where workers have committed themselves based on simple rules to increase productivity of each one, “he said.

He explained that already 2 million Mexican workers have exceeded this last line, so they will seek more companies and sectors of the economy to join this cause pursued by the CCE.

“We believe we already have 2 million Mexican workers who have exceeded the line of family welfare … we will seek that company by company, sector by sector join this cause.”

The increase was agreed after members of the private sector , workers and the federal government that makes up Conasami reached an unanimous agreement to increase the minimum wage by the proportions mentioned.

At three in the afternoon the negotiations culminated, where it was also decided to increase the minimum wage by 5 percent on the northern border so that it went from 176 pesos to 185.56 pesos a day by 2020. 

The new minimum wage was determined based on the current salary, to which 14.67 pesos were added through the so-called Independent Recovery Amount ( MIR ).

In recent days a member of the Council of Representatives of the National Minimum Wages Commission  had advanced that negotiators would increase it above 117 pesos.  

Source: milenio

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