MEXICO CITY (Reuters) – Mexico’s government announced on Wednesday that it will raise the minimum wage by 12% starting next year in a bid to help the poorest workers, as the new leftist president pledged the hike will not fan inflation but instead promote a “humanist” economy.
The expected wage announcement was made by Labor Minister Marath Bolanos at a regular morning press conference.
The minimum wage in Latin America’s No. 2 economy currently stands at nearly 249 pesos ($12.23) a day, after sharp hikes in recent years by the previous leftist administration hailed by supporters as a signature achievement.
The boost follows an agreement between the country’s labor and business sectors, Bolanos added.
“We continue on the path to rebuild the minimum wage and the purchasing power of Mexican men and women,” she said.
President Claudia Sheinbaum, who took office in October, has pledged that her government aims to increase the minimum wage by around 12% each year.
($1 = 20.3550 Mexican pesos)