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In the first week of December, the government of Mexican President Claudia Sheinbaum announced the adjustment plans of the minimum wage in Mexico for 2025. The news come as a continued effort to bolster the economy.
If you plan to hire internatinal employees in Mexico, this is yet another important factor to keep note. So, here’s a comprehensive breakdown of the changes, alongside key insights into Mexico’s labor market and economy.
New minimum wage in Mexico for 2025
The 2025 update marks a 12% increase in the minimum wage for both the Free Zone along the northern border and the rest of the country.
Due to the higher cost of living along Mexico’s northern border with the United States, the official minimum wage in that region is set at a higher rate.
Below are the details:
In Mexican Pesos
| Year | Free Zone (North Border) | Rest of the Country |
|---|---|---|
| 2022 | $260.34 | $172.87 |
| 2023 | $312.41 | $207.44 |
| 2024 | $374.89 | $248.93 |
| 2025 | $429.88 | $278.80 |
In US Dollars (Approximate)
| Year | Free Zone (North Border) | Rest of the Country |
|---|---|---|
| 2022 | $13.02 | $8.64 |
| 2023 | $15.62 | $10.37 |
| 2024 | $18.74 | $12.45 |
| 2025 | $21.49 | $13.94 |
Mexico’s economic snapshot
Beyond minimum wage increases, Mexico’s labor and economic statistics show significant progress:
Unemployment Rate
Mexico’s unemployment rate has consistently dropped over the years:
- 2021: 4.0%
- 2022: 3.3%
- 2023: 2.8%
- 2024: 2.5%
(Source: INEGI)
Labor Informality
- Historical Average: 57.6% since 2005
- Q1 of 2024: Decreased to 54.5%
(Source: BBVA Research)
Domestic Inflation
- Nov 2021: 7.37%
- Nov 2022: 7.80%
- Nov 2023: 4.32%
- Nov 2024: 4.55%
(Source: INEGI)
Demographics and investment insights
Other populational and economic metrics are important to cross-examine before investing.
Most Populated States
- State of Mexico: 16,992,418
- Mexico City: 9,209,944
- Jalisco: 8,348,151
- Veracruz: 8,062,579
- Puebla: 6,583,278
(Source: Censo de Población y Vivienda 2020)
Top Foreign Direct Investment (FDI) Regions
- Mexico City: 46%
- Nuevo León: 7%
- Baja California: 6%
(Source: Registro Nacional de Inversiones Extranjeras)
Countries Driving FDI in Mexico
- USA: $13,717.4M
- Germany: $4,167.19M
- Japan: $3,082.03M
(Source: Registro Nacional de Inversiones Extranjeras)
What does the new minimum wage in Mexico mean for employers?
Employers operating in Mexico must adapt to these changes to stay compliant and competitive. Whether expanding into the country or hiring top talent locally, grasping the latest regulations and labor trends is essential.
It’s important to have local insight to understand wages, inflation, and cost of life in different regions. Because this affects salary expectations and can influence your hiring strategy.
Either way, companies operating in Mexico have limited time to adapt their payroll, as the wage increase will go into effect on January 1, 2025.
For international businesses, a good approach to dealing with the effects of the new minimum wage in Mexico is hiring regional third-party collaborators, such as employers of record, or payroll process outsourcing agencies.
This type of collaboration can save you time and costs, as it streamlines the process of navigating ever-changing national regulations.
