The Mexican National Commission on Minimum Wages (Comisión Nacional de los Salarios Mínimos or CONASAMI) approved, by a majority vote on December 01, 2021, an increase to the daily minimum wage applicable in Mexico (including the corresponding amount applicable in the Free Zone of the North Border (Zona Libre de la Frontera Norte or ZLFN).

Before the increase was determined, the CONASAMI applied an independent recovery amount (Monto Independiente de Recuperación or MIR) in accordance with the following:

• MIR for the country: $16.90 Mexican Pesos (MXP) with the exception to the ZLFN, which is:

• MIR for the ZLFN: $25.45 Mexican Pesos (MXP).

On top of the MIR, the CONASAMI approved a 9% (nine percent) increase, from the 2021 rate, to the daily minimum wage applicable, resulting in $172.87 MXP (which is approximately $8.06 USD) for the country with the exception of the amount of $260.34 MXN (which is approximately $12.14 USD) for ZLFN.

The MIR and the 9% increase—combined—represent a true 22% increase in the daily minimum wage rate which translates in more than $30.00 MXP per day.

The new daily minimum wage of $172.87 MXP (approximately $8.06 USD) for the country and $260.34 MXN (approximately $12.14 USD) for the ZFLN will be effective as from January 1, 2022.