Mexico raises its still-low minimum wage by 12%, but it marks no increase in dollar terms

MEXICO CITY (AP) — Mexico has decided to increase its still strikingly low daily minimum wage by 12% next year. But because the Mexican peso has dropped by 18% in value over the last year, the increase actually marks a slight drop in constant dollar terms. The three-party minimum wage commission, made up of government, labor and business representatives, announced the increase Wednesday. It will take effect starting Jan. 1 2025. The new daily minimum wage will be about 279 pesos, or about $13.75. The 2024 wage of 249 pesos per day was worth $14.25 when it was announced in December 2023, but the peso has dropped in value against the U.S. dollar, from 17.20 then to around 20.30 now.