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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Illustration of Mexico's inflation rising to 4.63% in March 2026, featuring a market scene with rising prices and a billboard display.
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Mexico's annual inflation rises to 4.63% in early March

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Mexico's National Institute of Statistics and Geography (Inegi) reported annual inflation at 4.63% for the first half of March 2026, exceeding analysts' estimates. The National Consumer Price Index (INPC) rose 0.62% from the previous half-month period.

An analysis by ITESO's Business School shows Mexico's food basket cost rose 67% from August 2018 to March 2026, outpacing general inflation of 45%. In urban areas, it increased from 1,500 to 2,571 pesos per person monthly. This hike particularly impacts low-income households.

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Following the Council of State's suspension of the original decree, the Colombian government issued Decree 0159 on February 19, 2026, provisionally setting the 2026 minimum wage at $1,750,905—a 23% increase from 2025—plus a $249,095 transport subsidy, totaling nearly $2 million. The measure affects 2.4 million workers (impacting ~10 million people) and awaits a final Council ruling.

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