Mexico announced Wednesday that the country’s minimum wage would go up next year.
Mexican President Claudia Sheinbaum said the 12% minimum wage increase won’t increase inflation or deter foreign investment, which are common criticisms of wage hikes.
She said, instead, the move will promote a “Humanist Mexico," a trademark of the previous president, Andrés Manuel López Obrador, who also increased the minimum wage during his time in office. The minimum wage in Mexico has more than doubled since the start of his administration in 2018.
The wage increase brings the minimum wage up to a little over $20 a day at current market value in northern Mexico, in the zone just south of the U.S. border. In the rest of Mexico, the new minimum wage is about $13.75 a day.
Mexico estimates 8.5 million workers would see their wages rise next year.
