Mexico's minimum wage to rise 13% in 2026

Mexico's government confirmed a 13% increase in the minimum wage for 2026, benefiting millions of workers. The raise will take effect on January 1 and aims to boost purchasing power without causing inflation.

The National Commission on Minimum Wages (Conasami) approved a 13% increase in the minimum wage for 2026, as announced by Labor Secretary Marath Bolaños during the December 3 morning briefing. This adjustment adds 312.04 pesos monthly in the general zone, raising it to 9,582.47 pesos per month. In the Northern Border Free Zone, the daily raise is 440.87 pesos, leading to 13,409.80 pesos monthly, with an extra 5%.

President Claudia Sheinbaum's administration stressed that the change will not fuel inflation, supported by deals with businesses to stabilize basic basket prices, which covers 24 items and should not exceed 910 pesos weekly for a family of four. Around 8.5 million workers will benefit directly, building on progress that lifted 6.6 million out of poverty from 2018 to 2024.

By 2030, the goal is for the minimum wage to cover 2.5 weekly basic baskets. The Employers' Confederation of the Mexican Republic (Coparmex) pledged technical assistance to meet this target, noting the consensus with business groups.

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President Gustavo Petro signs decree for Colombia's 23% minimum wage hike to 2 million pesos in 2026, as workers celebrate and businesses express concerns.
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Colombia Decrees 23% Minimum Wage Increase for 2026 After Intense Negotiations

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Following stalled talks where unions demanded a 16% rise and businesses warned of economic risks, President Gustavo Petro decreed on December 30 a 23% increase in Colombia's 2026 minimum wage, to 1,750,905 pesos plus 24.5% higher transportation aid of 249,095 pesos, totaling 2 million pesos monthly. The hike benefits 2.4 million formal workers and aims for an ILO 'vital wage,' but prompts debate on inflation, SME impacts, and competitiveness.

Following the December announcement, President Claudia Sheinbaum detailed the 13% minimum wage increase for 2026 during a conference, highlighting adjustments for specific professions and marking the second hike of her term after significant gains under the prior administration.

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One week after President Gustavo Petro decreed a 23% minimum wage increase for 2026—setting it at 1,750,905 pesos based on ILO 'minimum vital' standards for a three-person family—experts warn of inflation exceeding 6%, interest rates rising to 11-12%, and price hikes across sectors, potentially eroding informal workers' purchasing power.

The Autonomous Fiscal Rule Committee (Carf) warns that the recent 23% minimum wage hike to $2 million—decreed on December 30—could cost $5.3 trillion in 2026 (0.3% of GDP), complicating fiscal sustainability. Labor Minister Antonio Sanguino announced plans to desindex key goods from the wage and provide SME relief to curb inflation.

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The Central Unitaria de Trabajadores (CUT) valued Interior Minister Armando Benedetti's proposal for a 12% increase in the 2026 minimum wage but urged the government to get closer to the 16% sought by unions. CUT president Fabio Arias made this direct appeal to President Gustavo Petro. Negotiations continue with key dates from December 22 to 30.

Jaime Alberto Cabal, president of Fenalco, filed a lawsuit with the State Council to temporarily strike down the decree raising the minimum wage by 23% this year. He argues the measure lacks technical backing and violates the legal framework. He warns it could lead to the loss of 772,340 jobs and the closure of numerous small and medium enterprises.

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The National Alliance of Small Merchants (Anpec) reported that the average price of the basic food basket rose 1.29% in January 2025 compared to December 2024, reaching 2,046.45 pesos. This 25.98-peso increase affects 44 essential products. The most impacted states include Yucatán and Querétaro with rises over 8%.

 

 

 

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