Num. 2021-21 | Labor Law
LEGAL ALERT: Increase of the Minimum Wage, 2022.
Starting on January 1st, 2022, the general minimum wage in Mexico will increase as follows:
- From $141.70 pesos per day to $172.87 pesos per day in the entire country with the exception of the free zone located on the northern border of the country, and
- From $213.39 pesos per day to $260.34 pesos per day in the free zone, located on the northern border of the country.
The free zone in the northern border of the country includes all the cities located in a strip of land of 25 kilometers of the border with the United States of America.
It is important to note, that the minimum wage for professionals will increase by 22%, depending on the profession or activity.
In addition to the above, deriving from the salary increase, the social cost of the operations of the companies will increase. Some of the concepts that will increase are:
- Labor indexed premiums or bonuses.
- Social Security premium.
- Housing premium.
- Savings funds.
- Employment benefits, and
- Ordinary or extraordinary labor unions premiums or fees.
It is very important that employers are aware that the reduction of the salary to an employee or the unilateral elimination of the labor benefits, is prohibited by the Federal Labor Law. Employers should be cautious with the strategies that may be implemented to impact the minimum wage increase, due to the fact that such strategies may result in labor rescission claims, labor inspections, or fines that could generate significant costs to the employers.
Our labor law specialists will be glad to assist you and answer any questions that you may have relating to this matter or any other legal aspect that may have any implications for your company or organization.
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