Business · Economy · 6 hrs ago
Mexican business group proposes limiting 2027 minimum-wage rise to inflation
Mexico’s main business group is proposing that the minimum wage rise only in line with inflation in 2027.
Its leader, José Medina Mora, says the extra increase mechanism known as MIR should end because it has met its original purpose.
Since 2019, Mexico has used above-inflation increases to recover purchasing power lost over decades.
The general minimum wage rose from 88.36 pesos a day in 2018 to 315.04 pesos in 2026, before accounting for inflation.
Business leaders say higher wages, along with other labor costs, are putting pressure on companies and formal employment.
Medina Mora cited the closure of 14 factories and the loss of about 60,000 jobs in Ciudad Juárez.
Mexico is also preparing to reduce the standard workweek from 48 to 40 hours by 2030, which businesses say will require changes and additional costs.
The proposal would mark a shift in wage policy, but the sources do not say whether it will be adopted.
Mexico’s main business group has proposed limiting the 2027 minimum-wage increase to inflation.
José Medina Mora, president of the Business Coordinating Council, said the country should stop using an extra-wage increase mechanism.
He argued that extraordinary increases had achieved their original goal and that wages should now preserve purchasing power without adding pressure on businesses and formal jobs.
The proposal comes amid business concerns about labour costs, company closures and slower formal employment.
- Who
- Mexico’s Business Coordinating Council, led by José Medina Mora.
- What
- It proposed limiting the 2027 minimum-wage increase to inflation and ending use of the MIR mechanism.
- When
- For 2027; the proposal was reported on October 12, 2026.
- Where
- Mexico.
- Why
- The business group cited rising labour costs and concerns about company closures and formal employment. Medina Mora said the goal of enabling workers to buy two basic food baskets had been reached.
This story does not have two clearly opposing sides.
Mexico’s general minimum wage was 88.36 pesos per day.
Mexico began applying double-digit minimum-wage increases to recover lost purchasing power.
The general minimum wage reached 315.04 pesos per day.
José Medina Mora proposed limiting future increases to inflation and abandoning the MIR for 2027.
Mexico is preparing a gradual reduction in the working week from 48 to 40 hours.
- Proposed limit
- Inflation
- Proposed year
- 2027
- MIR
- Mechanism that added a fixed peso amount to the annual negotiated percentage increase
- Minimum wage in 2018
- 88.36 pesos per day
- Minimum wage in 2026
- 315.04 pesos per day
- Ciudad Juárez closures and job losses
- 14 maquiladoras closed; about 60,000 jobs were lost
What people are saying
It is now just an adjustment for inflation
Once the objective has been achieved, there would no longer be an MIR
Sources
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