Mexico’s first woman president, Claudia Sheinbaum, has announced her plan to raise the minimum wage by 12% starting next year and continuing every year. This follows the significant wage hikes introduced by her predecessor, aiming to improve living standards for millions of workers in Mexico’s informal labor market.
Why the Minimum Wage Increase?
Around 40% of Mexico’s workforce earns the minimum wage or less. With the current daily minimum wage set at 248.93 pesos, Sheinbaum’s goal is to raise it to cover the cost of 2.5 basic food baskets, an increase from the current 1.6. The plan is to ease financial pressures on low-income workers while boosting purchasing power.
Other Key Reforms: Shorter Work Week & Equal Pay
Sheinbaum also announced plans to cut the work week from 48 hours to 40 hours, continuing the efforts of her predecessor, Andres Manuel Lopez Obrador. Additionally, she introduced reforms for women’s rights, including a constitutional guarantee of equal pay for equal work, marking a significant step towards gender equality.
Challenges Ahead
Though the wage increase plan aligns with previous efforts, the push for a shorter work week faces resistance from businesses and opposition parties. Sheinbaum’s government will need broad support to pass these reforms, but the momentum from her predecessor’s successes provides a strong foundation.
Conclusion: A New Era for Workers in Mexico
Sheinbaum’s ambitious reforms aim to reshape Mexico’s labor landscape, providing better wages and working conditions for millions of citizens. If successful, these changes could mark a transformative period for the country’s workforce.