Mexico Increases Minimum Wage and UMA in 2025

Effective January 1, 2025, Mexico increased the minimum wage and UMA by 12 and 4.21 percent, respectively. The Unidad de Medida y Actualización (UMA) is used to calculate fines, taxes, and social benefits. The UMA impacts private medical insurance, influencing sum insured amounts and deductibles. Usually, minimum wage employees in Mexico are security guards, cleaning staff (usually outsourced), and some non-union hourly workers.

Minimum wage increased 12%

Unidad de Medida y Actualización (UMA) increased 4.21%

• Daily UMA: MXN 113.14
• Monthly UMA: MXN 3,439.46
• Annual UMA: MXN 41,273.52

Who Is Most Impacted?

Low-wage workers and employees in the Northern Border Free Zone (ZLFN) will directly benefit from the wage hike. Those with benefits tied to the minimum wage, such as social security contributions and severance payments, will see changes in their compensation packages. Unionized workers and employees under formal labor agreements may experience adjustments in their contracts based on these new figures. Additionally, recipients of government benefits linked to UMA, including certain social programs and pensions, will see changes in their benefit amounts as the UMA value is updated.

Who Is Less Impacted?

Mid- and high-income professionals, whose wages are primarily market-driven, are unlikely to see immediate changes due to these policy updates. Similarly, gig workers and freelancers, whose earnings depend more on market demand than on statutory minimums, may not be directly affected. Executives and specialists, whose salaries are typically negotiated independently of minimum wage laws, are also less likely to experience immediate impacts from these changes in Mexico’s wage and economic policies.

Broader Economic Impact

Employers face higher payroll and social security costs, potentially leading to inflationary effects on goods, services, and housing. Private sector costs, including insurance premiums, loans, and mortgages, may also rise. Government spending will likely increase due to higher public sector wages and welfare payments. These changes could impact Mexico’s economic competitiveness, potentially influencing investment decisions and accelerating automation trends. There’s also a risk of job losses in some sectors or a shift towards informal employment as businesses adapt to the new economic landscape.