- The Mexican government agreed to raise the daily minimum wage by 20% to 123.22 pesos.
- This is the second major increase in the minimum wage, which was raised by 16% in 2019.
- 11 million workers will directly benefit from the change.
Millions of Mexican workers will be getting a raise. The Mexican government announced it will raise the daily minimum wage by 20% to 123.22 pesos. This follows a 16% raise in the minimum wage in 2019.
“This is an important increase,” said Mexican President Andres Manuel Lopez Obrador. Since taking office in December of 2018, President Obrador has embarked on numerous policies designed to reduce poverty and inequality in the nation of 130 million.
The wage increase will directly affect the nearly 11 million Mexican workers who earn the minimum wage.
Critics warn the move could spark inflation, but thus far the inflation rate has stayed below the targets set by Banxico, Mexico’s central bank. Banxico continues to cut interest rates.