Mexico’s minimum wage for 2024 saw a 20% increase, both for the general wage and the Northern Border Free Zone. As a freelancer, it’s essential to stay up-to-date with every economic aspect of the country, whether you have employees or offer services to companies that follow labor regulations.

Not in either category? Then, it's still important to stay informed to use it as a reference when negotiating your contract rates. This post will be useful, especially if you're looking for financial stability and compliance with current regulations.

Everything You Need to Know About Mexico's Minimum Wage 2024

What is the Minimum Wage in Mexico?

The minimum wage is the lowest amount an employer is required by law to pay a worker for their labor.

According to Article 90 of the Federal Labor Law, this wage is meant to cover the basic needs of a head of household. It doesn’t only apply to material needs but also includes social and cultural aspects, as well as ensuring their children’s mandatory education.

It’s important to note that there are different types of minimum wages in Mexico:

• General minimum wage

• Professional minimum wage

• Minimum wage in the Northern Border Free Zone (ZLFN)

As a freelancer, it's essential to know the 2024 integrated minimum wage to properly calculate severance pay and other aspects—whether you're providing services to a company or managing a team.

Mexico's Minimum Wage 2024

The general minimum wage in Mexico for 2024 was set at 248.93 pesos per day at the start of the year, up from 207.44 MXN. This 20% increase was the result of an agreement between the labor sector and the business sector, according to President Andrés Manuel López Obrador.

Consequently, the minimum monthly wage in Mexico went from 6,223.2 to 7,468 MXN. This increase benefits 8.9 million workers across the country, representing 40% of those registered with the IMSS (Mexican Social Security Institute).

It’s important to note that the current wage includes 27.40 MXN from the Independent Recovery Amount (MIR) + a 6% wage increase.

Minimum Wage 2024 in the Border Zone

The minimum wage for 2024 in the Northern Border Zone also saw an increase, rising from 312.41 to 374.89 MXN per day. This amounts to 63 pesos more per day, with a total monthly wage of approximately 11,250 MXN.

This 20% adjustment applies to those working in the Northern Border Free Zone (ZLFN), which consists of several municipalities located along the border with the United States. The wage is higher due to special tax incentives and the type of economic activity in the region aimed at fostering growth.

The MIR integrated for the ZLFN is 41.26 MXN, along with the 6% direct salary increase.

Professional Minimum Wage in Mexico 2024

The professional minimum wage for 2024 also saw a 20% increase. This applies to individuals practicing certain trades or professions.

Each profession has a different minimum wage, reflecting the nature of the work. The wage also depends on skill levels and the demand for the job.

In Mexico, 61 regulated trades and professions fall under this category, including:

• Bricklayers

• Carpenters

• Cooks

• Shoemakers

• Reporters

• Auto mechanics

• Freight drivers

• Seamstresses working in clothing factories or workshops

Each of these occupations has its own remuneration, adjusted to reflect the complexity and demand of the job.

Minimum Wage in Mexico 2024: How and Who Determines It

Mexico’s minimum wage for 2024 is regulated by the Federal Labor Law. The entity responsible for determining the wage is the National Commission on Minimum Wages (Conasami).

This commission is made up of business owners, workers, and government representatives. Every year, they meet to discuss, approve, and regulate minimum wages across the country.

In addition to presenting wage increase proposals, key economic factors are analyzed, including inflation, economic growth, cost of living, and the basic needs of workers.

Another key factor is the UMA (Unit of Measurement and Update), an economic indicator used to prevent wage increases from affecting other obligations.

Once the minimum wage is set, it’s published in the DOF (Official Federal Gazette), informing all labor market participants about the new wage.

Impact of the Minimum Wage Increase

The increase in the minimum wage in Mexico has effects that go beyond a simple raise.

First, a higher wage means increased purchasing power. This positively impacts workers’ quality of life, as they can better cover their basic needs.

The MIR, for its part, ensures that working conditions for all employees are fairer and more equitable.

Additionally, the IMSS can offer greater social protection to workers by adjusting contributions and benefits.

Between 2018 and 2022, around 5.1 million people in Mexico were lifted out of poverty, and Conasami reports that 4.1 million of these workers achieved this thanks to wage increases.

Therefore, wage increases have been key in reducing poverty in the country.

What is the Average Salary of Workers in Mexico?

The average salary in Mexico in 2024 varies depending on the type of work, sector, and level of formality.

In general:

• The average minimum monthly wage in Mexico is around 9,253 MXN, according to INEGI (National Institute of Statistics and Geography).

• In formal employment, it rises to 12,417 pesos per month.

• Workers in the informal sector tend to earn less, with an average of 5,560 MXN per month.

Other factors also play a role, such as education level, work experience, and profession. For instance, a programmer’s average salary is not the same as that of a financial analyst.

History of Mexico’s Minimum Wage Since 2018

Since Andrés Manuel López Obrador took office in 2018, Mexico’s minimum wage has seen consistent and significant increases.

In 2018, it was 88 MXN per day, and by 2024, it has grown by 110% overall.

Here’s a look at the wage hikes in recent years:

• In 2019, it increased by 16.2%.

• In 2020, it went up by 20%.

• In 2021, the increase was 15%.

• In 2022, the highest increase in recent years was 22%.

• In 2023, the raise was 20%.

• The most recent, in 2024, is another 20% increase.

As a freelancer, you need to stay informed about these salary changes. If you're an employer, it will help you meet your obligations under the law, and it can also serve as a reference when calculating severance based on specific job functions.

This information can also be helpful if you have a dependent work relationship with a company or when setting your rates as a freelancer.

In any case, DolarApp allows you to receive payments in USD or MXN. And if you want to convert those funds from dollars to Mexican pesos, you can do it quickly with a favorable exchange rate.