Mexico Increases Monthly Minimum Wage in 2021
On Tuesday, December 16th, 2020, the Mexican Government announced an increase in the monthly minimum wage by 15%. This news generated controversy in the country’s business sector as it was considered unfair and an attempt against the economic and productive sector in Mexico. The main business leaders voted against this reform that primarily affects the segment of MSMEs, which have not yet managed to compensate for the damage caused by the pandemic.
Intertec, Asinta’s employee benefits consulting Partner in Mexico, offers this opinion piece on the subject. The following is an excerpt.
“The current situation the world is experiencing makes many question the Mexican Government’s measures to combat the crisis. While it is true that an increase in the minimum wage could be a solution to the problems, the truth is that it is an increase beyond dimensions that might worsen the national crisis.
“The opinion of business leaders is a complete rejection of the percentage imposed by the Mexican Government, which could be the last nail of many small and medium-sized companies in Mexico, which together with the pandemic, the current economic crisis, and the factor of living from day to day, leaves them defenseless against measures such as the increase in the minimum wage.
“Let us remember that in Mexico, more than 90% of the total number of companies operating are MSMEs, which employ more than 60% of the total population and represent the country’s productive engine.”