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HomeInternational Observatory of Living WagesPress Releases and Newsletters

Results of the study for proposing the increasing amount to the Minimum Wage for 2020 and its repercussions

The Minimum Wage had an historic recuperation in 2019, however, still represents very serious lags that decrease the living quality of the working class.

• For the Minimum Wage to reach the purchasing power of 1976, it should increase 281%; while to level the GDP growth per capita of the neoliberal period, the increase should be 349%.

• For 2020, the Minimum Wage could increase in a nominal range between 24 and 25% to reach an amount of $ 128.60 per day without the inflation exceeding the monetary policy objective (3% +/- 1%).

• It is recommended and of highest priority to continue with a policy to increase the purchasing power of wages in order to reach dignified levels.


Basic basket 2019, background, comparative and methodological proposal

The level of wages as the price of labor has been the subject of extensive discussion; Neoclassical theories maintain that it should be the market that adjusts the levels, while critical theories point out the negative effects that this can have, so the State should, at least, set a minimum amount of remuneration. If we assume the first position, wages should be a function of productivity; If we assume the second, we must face the problem of what that amount should be.

In theoretical terms, the salary should be sufficient for the reconstitution of the labor force and for the reproduction of class, for which reason the amount is associated with the price level of the goods that are indispensable to the worker for these purposes. The Political Constitution of Mexico states in the second paragraph of section VI of article 123 that wages must be sufficient for a head of the family to cover his needs in the material, social and cultural order, as well as to provide education for his children .

In this sense, this work proposes a methodology to integrate the amount of the indispensable salary of a head of the family, starting from building a basic basket made up of a food basket and a non-food basket. In the first part we present theoretical background to the construction of the basket and in the second part we show the corresponding calculations for a price level of December 2019.



4 May 2019!
Press Releases and Newsletters
22 November 2019!

The situation of the labor market in Mexico before and during COVID-19

Con base en las estadísticas proporcionadas por el IMSS, el número de empleos no

se vio afectado por el aumento al salario mínimo de enero de 2019.

La dinámica de generación de empleos tampoco se vio afectada por el aumento

salarial, ni en el conjunto nacional ni en el nivel desagregado del norte del país.

• El análisis de los resultados estadísticos no coincide con los obtenidos por BANXICO

y se destacan errores metodológicos del estudio del banco central.


7 May 2020!

“Results of the study to propose the amount of the increase to the Minimum Wage for 2021 and its repercussions”

In 2019 and 2020, the increases to the Minimum Wage had a positive impact on the fall in Labor Poverty and reduced the wage gap that had existed since 1976; In this sense, this work aims to carry out a projection of a proposal to increase the minimum wage for 2021 in Mexico without affecting the variables inflation and employment. Using a data panel and a multivariate regression model, it is shown that the increase could be in a nominal range of 19 to 23% to reach an amount of between $ 146.63 to $ 151.56, in addition to showing that the salary increases had positive repercussions in the face of the CoViD-19 pandemic.

27 November 2020!