On December 4, 2024, the National Minimum Wage Commission (“CONASAMI” for its acronym in Spanish) agreed to increase Mexico’s general minimum wage to $278.80 pesos per day, and to $419.88 pesos per day in the Free Economic Zone of the Northern Border, effective January 1, 2025. According to CONASAMI's press release, the minimum wage in force in 2024 will be increased by $12.85 pesos for the general minimum wage and by $19.36 pesos for the minimum wage to be paid in the Free Economic Zone of the Northern Border through the so-called Independent Recovery Amount (“MIR”, for its acronym in Spanish) and a percentage increase of 6.5% will be applied. Thus, the minimum wage effective for 2025 implies an overall increase of 12%.

The municipalities included in the Free Economic Zone of the Northern Border are: a) Baja California: Ensenada, Mexicali, Playas de Rosarito, Tecate and Tijuana, b) Sonora: Agua Prieta, Aitar, Caborca, Cananea, General Plutarco Elias Calles, Naco, Nogales, Puerto Peñasco, San Luis Rio Colorado, Santa Cruz and Saric, c) Chihuahua: Ascension, Coyame del Sotol, Guadalupe, Janos, Juarez, Manuel Benavides, Ojinaga and Praxedis G. Guerrero, d) Coahuila: Acuña, Guerrero, Hidalgo, Jimenez, Nava, Ocampo, Piedras Negras and Zaragoza, e) Nuevo Leon: Anahuac, and f) Tamaulipas: Camargo, Guerrero, Gustavo Diaz Ordaz, Matamoros, Mier, Miguel Aleman, Nuevo Laredo, Reynosa, Rio Bravo and Valle Hermoso.

Companies must review and adjust their payroll practices to comply with this new minimum wage increase, which could also affect benefits such as the savings fund and food coupons depending on how these benefits have been agreed upon with employees and unions.