Despite the current conditions of inflation and economic activity, during the next six-year term there will still be room to increase the minimum wage by a threshold of 20 percent or at least by double digits, according to the HR Ratings agency.
“In general terms, given that not such a significant percentage of the population receives the minimum wage, there could still be slight gaps,” said Ricardo Gallegos, deputy general director of economic analysis at the rating agency.
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In an interview with El Sol de México, the executive also considered that the increase in workers’ income by 2024 could have a minimal impact on the formation of prices for goods and services.
“It is true that the percentage of the population that receives the minimum wage is not so important as to have an impact (on inflation), but it does complicate things,” added the HR Ratings expert.
“In previous administrations, when there was talk of an increase in the minimum wage, it was a resounding no, because if it was not linked to productivity, the salary should practically not be touched,” added the economist.
One of the promises of President Andrés Manuel López Obrador at the beginning of his six-year term was to double in real terms, that is, after inflation, the minimum wage of Mexicans, which by then was only 88 pesos per day.
On December 1, the federal government announced an agreement between workers and employers to increase the general minimum wage by 20 percent, going from 207.44 to 248.93 pesos per day or around seven thousand 467 pesos per month.
“This has not happened for at least 50 years, which is why I say it is historic. It is necessary to thank the support of the labor sector and the business sector, especially the latter, because they accept the increase. That is, there was an agreement, the increase is carried out by consensus,” the President said that day.
Prior to its approval, business organizations warned that an increase of this magnitude was very complicated for employers given the operating or tax costs that they already had to absorb. Furthermore, members of the Bank of Mexico (Banxico) have warned that salary increases do not necessarily translate into an improvement in people’s well-being, but they do have a direct effect on inflation, which in turn affects monetary policy. .
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However, data from the National Institute of Statistics and Geography (Inegi) indicate that until the end of October just over 20 million 12 thousand Mexicans with formal employment earned up to one minimum wage, 7.7 percent less compared to the same period last year. .
Towards the end of 2024, the rating agency expects that annual general inflation in the country will be at a level of 4.05 percent, above the central objective of the Bank of Mexico (Banxico) which is three percent.
2023-12-24 08:00:00
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