Categories: World

AMLO announces 20% hike in Mexico’s minimum wage

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Mexico’s president said Friday the country’s minimum wage will rise by 20% in 2024, to the equivalent of about $14.25 per day.

MEXICAN GOVERNMENT FORCES FREIGHT LINES TO PRIORITIZE PASSENGER RAIL

About one-third of Mexico’s registered workers report earning the minimum wage, which will amount to about $1.75 per hour starting Jan. 1.

Mexican President Andrés Manuel López Obrador gestures during a news conference at the National Palace in Mexico City, Mexico, June 20, 2022. (Reuters/Edgard Garrido/File Photo)

In pesos, the minimum will rise from about 207 pesos to about 248 pesos. The minimum is higher in areas along the northern border, where living costs are higher. There, the 20% increase would take the minimum to about 375 pesos, or about $21.50.

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Part of the increase in dollar terms comes from the peso’s appreciation against the dollar in the last year. The Mexican currency has risen by about 10% in value against the dollar since December 2022. That increase is largely attributable to the high inflow of remittances and high domestic interest rates, which make the peso attractive for investors.

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