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Minimum Wage Increase in Mexico for January 2020 Will Not Affect Most Manufacturers

Minimum Wage Increase in Mexico for January 2020 Will Not Affect Most Manufacturers

On December 16, 2019, the Mexican National Commission on Minimum Wages (CONASAMI), announced a decree to increase the daily minimum wage in Mexico beginning January 1, 2020. This is the second minimum wage increase in a year and affects around 3.44 million workers in Mexico.

Starting January 1, 2020 the new daily minimum wage will increase to $123.22 MXP for most of Mexico (approximately $6.40 dollars a day when the peso is $19.25/dollar), while the new daily minimum wage along Mexico’s northern border region will increase to $185.56 MXP ($9.70 dollars a day). A new tax decree issued by Mexican President Lopez Obrador in January 2019 established a new “free zone” along the U.S.-Mexico border and is subject to a different daily minimum wage.

Overview of the Daily Minimum Wage in Mexico 2019-2020

 Exchange rate: $19.25 USD

 January 2019
 Daily Salary

 January 2020
Daily Salary

 "Free Zone"
 Border Region
 (see affected cities heres)

 $176.72 MXP
 $9.18 dollars
 $9.63 dollars
 Rest of Mexico  $102.68
 $5.33 dollars

Will the New Daily Minimum Wage Affect Manufacturers and Maquiladoras?

Most manufacturers won’t be affected. Manufacturers and maquiladoras along the northern Mexico border region already pay significantly more than the new daily minimum wage that goes in effect in January 2020. The average wage in Mexico for an assembler in a maquiladora is $2.60 dollars and hour, around $20 dollars a day. Learn more about the daily minimum wage while manufacturing in Mexico here.

Can I See How Much My Labor Costs Would be to Manufacturer in Mexico?

Yes! CPI offers a no-obligation, free labor cost analysis for manufacturing in Mexico. From assemblers and operators to engineers and managers, we have all the costs and can show you the reality of Mexico’s labor cost savings while maintaining U.S. quality standards. Get yours today!

How Does CPI Help You Determine Average or Minimum Wages?

When you work under CPI's Maquiladora Shelter Program, we handle it all. From setting an average wage structure that encourages employee retention, to complying with Mexican labor laws and every detail in between. Our Mexico Shelter IMMEX Program allows you to get up and running quickly under our existing permits and certifications, minimizing risk and exposure and is less expensive than incorporating on your own. Learn more about our IMMEX Maquiladora Program.

Sources: Los Angeles Times, Mexico News Daily, The National Law Review


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