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Mexico's 2026 Minimum Wage Jumps 13%, Now Third-Highest in Latin America

Employers plan smaller 2026 pay raises, reflecting rising wage compression.

Overview

  • The general floor rose to 315.04 pesos per day from 278.80, with the northern border rate up 5% to 440.87 pesos, effective Jan. 1.
  • Officials estimate about 8.5 million workers benefit directly from the change.
  • In dollar terms, the new levels are roughly $17.58 per day nationwide and $24.61 at the border.
  • AON projects average 2026 pay increases of 5.4% for non‑union staff and 6.4% for unionized workers, while Michael Page reports only 62% of companies are certain to grant raises.
  • Mercer and WTW flag wage compression that could prompt staffing adjustments and pay redesigns, with AON warning the minimum may surpass typical market pay by 2028 if current trends hold.