What will your two weeks be like and who will benefit from the increase?

 What will your two weeks be like and who will benefit from the increase?  - The financial

Business owners, unions and the federal government have agreed to a 20 percent increase in Mexico’s general minimum wage, which will come into force on January 1, 2024.

The announcement was officially made by President Andrés Manuel López Obrador on the morning of December 1, the day he celebrates his five-year protest anniversary as president of Mexico.

The President recalled that when he took office, the minimum wage was 88 pesos per day, equivalent to 2,687 pesos per month. However, the amount increased year after year: in 2019 an increase of 16.2 percent was achieved; by 2020 it was 20 percent; in 2021 it was 15 percent; In 2022 it was 22 percent and in 2023 the increase was 20 percent.

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How much will you earn from the minimum wage increase in 2024?

With this new increase, the general minimum wage in Mexico will rise from 207.44 pesos (2023) to 249 pesos per day by 2024, which, according to López Obrador, is equivalent to 7,508 pesos per month. This amount divided into two equals 3,754 pesos, which is the amount you receive every two weeks.

In the free zone on the northern border, the salary will increase from 312 pesos (2023) to 375 pesos per day from 2024, i.e. from 9,372 to 11,403 pesos per month. That’s equivalent to 5,701 pesos every two weeks.

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Who will benefit from the minimum wage increase in 2024?

The new increase in the minimum wage will only benefit workers who work in formal companies and earn up to the minimum wage.

In the third quarter of 2023, the INEGI registered 19,681,392 workers in this sector, which, however, only benefits those who work in officially registered companies, since only these are obliged to comply with the regulation announced in the Official Gazette of the Federation (DOF ).

The remaining employees earning one and a half or more minimum wages will not benefit from the 20 percent increase as their salary will be increased in accordance with contract negotiations with their company.

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