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Mexico Sets 2026 Minimum Wage Up 13% as Analysts Warn of Formal Job Risks

New survey data show formal jobs slipping, with informality rising.

Overview

  • The tripartite commission approved a 13% rise to 315.04 pesos per day nationwide (about 9,582.47 pesos per month), while the Northern Border increases 5% to 440.87 pesos to protect regional competitiveness, according to business leaders.
  • Official ENOE data show that in October formal employment fell by 176,349 jobs as informal work rose by 655,511 people, lifting the informality rate this year from 53.7% to 55.7%.
  • Banamex and other economists caution that continued double‑digit hikes without productivity gains raise costs, risk discouraging formal hiring, and could pressure consumer prices.
  • AON projects the minimum could surpass average market wages by 2028, while Michael Page expects most professionals to see only 1%–5% pay increases in 2026.
  • Employers are leaning more on variable pay and benefits to retain staff, and regional councils urge SME support, training, and digitalization to boost productivity and limit informality.