On December 19th, 2016, the Council of Representatives of the National Commission of Minimum Wages ("CONSAMI") published in the Federal Official Gazette ("DOF") the resolution fixing the general and professional minimum wages effective as of January 1st, 2017, same which had been announced by the media earlier this month.

CONASAMI determined the following:

  • To grant an extraordinary increase of $4.00 pesos to the general minimum wage, known as Independent Recovery Amount ("MIR"), to reach $77.04 pesos per day, with the objective of gradually and steadily recovering the purchasing power of workers earning minimum wage.
  • To grant an increase of 3.9% to the general and professional minimum wages, resulting in $80.04 pesos per day.

The above mentioned increases will become effective as from January 1st, 2017.

It should be noted that CONASAMI has reiterated in several occasions, including the resolution at issue, that the referred increases are not cumulative and, therefore, under NO circumstances, but especially in salary revision bargaining processes to be held during the following year, employers and unions must consider a 9.58% increase to the minimum wage. The increase should be limited to 3.9% only.

CONASAMI also recommends that contractual wage negotiations be carried out within the specific conditions of each company, taking into account their productivity, competitiveness and the need to generate decent jobs.

Finally, CONASAMI resolved that the List of Professions, Trades and Special Works in force during 2016 will remain unchanged with respect to the definitions and descriptions of said activities and professions.

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