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Mexico Lifts 2026 Minimum Wage 13% and Sends 40-Hour Workweek Plan to Congress

Economists warn of inflation risks given a cooling economy.

Overview

  • Effective January 1, 2026, the daily floor rises to 315.04 pesos nationwide and about 440.87 pesos in the northern border zone, according to labor officials.
  • The National Commission on Minimum Wages approved the change as a 6.5% raise plus an independent recovery amount, pending formal publication in the Official Federal Gazette before January 1.
  • President Claudia Sheinbaum says the decision followed consultations with the finance ministry, the central bank and business leaders.
  • The proposal to trim the statutory workweek would reduce the cap from 48 to 40 hours by 2030, cutting two hours per year starting in 2027 if Congress approves.
  • Analysts and central bank deputy governor Jonathan Heath caution that bringing the floor closer to the median wage could spur price pressures, with Mexico logging a 0.3% third-quarter contraction and facing trade uncertainty.