Mexico City, Mexico — The proposed undersecretary for the upcoming Andrés Manuel López Obrador government says there is a possibility of a minimum wage hike for 2019.
Gerardo Esquivel, proposed for the Undersecretary of Expenditures for the government of Andrés Manuel López Obrador says there is a possibility that the minimum wage could increase to 101 peso per day as of January 1, 2019.
“It is going to be announced, possibly, and this is being talked about with the different economic agents about the very real possibility of increasing the minimum wage for the first time in a long time, above the extreme poverty line, from the line of minimum welfare, as defined by Coneval, which is 100 to 101 peso.
“It will be the first thing that will be announced, possibly from the first day of December, and will go into effect on the first day of 2019,” he detailed.
“The minimum wage is nearly at 89 peso and already that fear that had been generated by the inflationary issue, which we discussed for a long time, we managed to give that increase in real terms for the first time in a long time and it did not generate inflationary pressures, it did not generate wage pressures on other types of workers, but instead, it did benefit the quality of life of many workers,” he added.
He explained that although a wage increase to 101 peso would bring many full time workers above the poverty line, he said that despite this increase, the salary would remain low since minimum wage should be close to double what it is today.
The monthly minimum wage, which is 2,650.80 peso, is still below the urban welfare line which combines food and non-food expenses, which according to El Consejo Nacional de Evaluacion de la Politica de Desarrollo Social (The National Council for the Evaluation of Social Development Policy) is 2,975.27 peso per person, per month.
The current minimum wage is 88.36 peso per day for an 8-hour shift.