On December 16, 2020, the Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) approved, by majority vote, a general increase to the daily minimum wage, including an increase to the minimum daily wage in the Free Zone of the North Border (Zona Libre de la Frontera Norte or ZLFN)—an area that comprises cities along or near the U.S. border. Also, on December 23, 2020, CONASAMI published the corresponding decree in the Official Gazette of the Federation.

Prior to determining the annual increase, the CONASAMI applied the independent recovery amount of MXN$10.46 to the 2020 minimum daily wage.

The CONASAMI approved a 6 percent increase to the daily minimum wage on top of the independent recovery amount, leaving a final minimum wage for 2021 of MXN$141.70 (approximately USD$7.08).

The CONASAMI also increased the daily minimum rate for the ZLFN. It will be a 6 percent increase over the 2020 rate in addition to the independent recovery amount of MXN$15.75 of the current 2020 minimum wage, resulting in a rate of MXN$213.39 (approximately USD$10.66) for 2021.

In combination, the independent recovery amount and the 6 percent increase represent a 15 percent increase in the daily minimum wage.

The new daily minimum wage will be effective on January 1, 2021, rising from the current rate of MXN$123.22 to MXN$141.70 (which is approximately USD$7.08). The minimum wage for the ZLFN will increase from MXN$185.56 to MXN$213.39 (approximately USD$10.66).

Additionally, two job categories have been added to the list of professional minimum wages, including:

• domestic workers, with a 25 percent increase over the current minimum wage, reaching MXN$154.03 daily (approximately USD$7.70); and

• agricultural laborers, with a 30 percent increase over the current minimum wage, reaching MXN$160.19 daily (approximately USD$8.00).

Pietro Straulino-Rodríguez is managing partner of the Mexico City office of Ogletree Deakins.

Nora M. Villalpando Badillo is of counsel in the Mexico City office of Ogletree Deakins.

Iván Andrade Castelán is a law clerk in the Mexico City office of Ogletree Deakins.