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Mexico Set to Raise Minimum Wage in 2026 as Banamex Sees 11% Hike to 309.5 Pesos

Analysts caution that cumulative increases are pressuring services and small firms without signaling faster inflation next year.

Overview

  • President Claudia Sheinbaum said her government will implement a new minimum‑wage adjustment in 2026, with the exact figure yet to be announced.
  • Banamex estimates a nominal 11% increase to 309.5 pesos per day, consistent with annual gains of 10% to 12% needed to reach the 2.5 basic‑basket goal by 2030.
  • The bank links higher wages to persistent service‑sector inflation, noting quicker pass‑through in entertainment and lagged effects in education and health.
  • Risks cited include higher costs that could discourage hiring and strain small and medium‑sized enterprises, alongside broader wage spillovers known as the lighthouse effect.
  • Despite the risks, Banamex does not expect a faster overall inflation rate in 2026 and urges productivity, investment, and human‑capital measures, including higher female labor participation.