Global Economy

published : 2023-12-01

AMLO announces 20% hike in Mexico's minimum wage

Minimum wage will rise to approximately $1.75 per hour come Jan. 1

President Andrés Manuel López Obrador presenting the minimum wage hike announcement (taken with Canon EOS 5D Mark IV)

Mexico's president declared on Friday that the country's minimum wage will experience a remarkable 20% increase in 2024, reaching around $14.25 per day.

A substantial number of Mexico's registered workers, about one-third, currently earn the minimum wage, which translates to roughly $1.75 per hour starting from January 1st.

Mexican workers protesting for higher minimum wage (taken with Nikon D850)

President Andrés Manuel López Obrador, often referred to as AMLO, made this announcement during a news conference at the National Palace in Mexico City.

Considering the influence of regional living costs, the minimum wage will vary. Along the northern border, where expenses are higher, the 20% increase will elevate the minimum wage to about 375 pesos or approximately $21.50.

A close-up of Mexican pesos symbolizing the impact of the currency appreciation on minimum wage (taken with Sony Alpha a7 III)

This rise in dollar terms is partly attributed to the peso's appreciation against the US dollar over the past year. Since December 2022, the Mexican currency has jumped by approximately 10% in value against the dollar, largely due to significant remittances and attractive domestic interest rates for investors.