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Mexico Approves 12% Minimum Wage Increase for 2026

Under President Sheinbaum’s annual 12% increase plan, a constitutional reform now ties the minimum wage to inflation to protect workers’ purchasing power.

Overview

  • The general daily wage will rise from 278.80 to 312.25 pesos and the Northern Border Zone rate from 419.88 to 470.46 pesos effective January 1, 2026.
  • A 2024 amendment to Article 123 guarantees automatic adjustments if inflation outpaces projections by Banco de México.
  • The government’s multi-year strategy aims to lift the minimum wage to the equivalent of 2.5 basic food baskets by the end of the Sheinbaum administration.
  • The Guaranteed Minimum Pension will increase by 12%, raising the monthly benefit to an estimated 10,545.54 pesos.
  • Between 2018 and 2025, Mexico climbed from the lowest to the sixth-highest minimum wage in Latin America while keeping average incomes near a record 18,912 pesos per month.