Companies with employees in Mexico should ensure their compensation packages comply with the new minimum wage requirements, which became effective January 1.

On December 26, the Mexican National Commission on Minimum Wages published a resolution in Mexico’s Federal Official Gazette, increasing the general and professional daily minimum wages in Mexico.

The daily minimum wage increase is effective as of January 1, 2014 and covers the two geographic areas into which Mexico is divided for purposes of minimum wage calculations. Area “A” includes all of Mexico’s major cities and entry ports, while Area “B” covers all other municipalities in Mexico. The increase for both areas will be 3.9% over the general daily minimum wage applicable for 2013. The general daily minimum wages for geographic areas “A” and “B” are now 67.29 pesos (approximately US $5.15) and 63.77 pesos (approximately US $4.88), respectively.

The increase not only benefits employees earning minimum wage in areas “A” and “B,” but also marginally increases (i) legally mandated benefit calculations, including certain mandatory severance thresholds under the Mexican Federal Labor Law, and (ii) the general calculation of duties and penalties under Mexican laws.

The official publication of the general and professional daily minimum wages for 2014 and a complete breakdown of geographic areas “A” and “B” may be found here.

Companies with employees in Mexico should review their compensation practices to ensure they are updated and in compliance with the new minimum wage requirements.