What Is the Current Minimum Wage in Mexico?

Mexico adjusts its minimum wage every year through CONASAMI, and the new 2026 minimum wage rates took effect on January 1, 2026. These rates are mandatory for every employer in Mexico, regardless of company size or industry.

The minimum wage affects payroll calculations, Social Security contributions, seniority bonus caps, severance calculations, and full employer compliance. This makes it essential for employers to update their systems every January.

2026 Minimum Wage Rates

• General Zone Minimum Wage: MXN $312.41 per day
  
  

• Northern Border Free Zone (ZLFN): MXN $468.45 per day

These increases reflect Mexico’s continued efforts to strengthen worker purchasing power and keep wages aligned with inflation and cost-of-living realities.

Why the Two-Wage Zones Exist

• The general zone applies to most of Mexico’s territory.
  
  

• The Northern Border Free Zone covers municipalities along the U.S. border, where living costs, commercial activity, and competitiveness are higher.
  
  

Key Points Employers Must Know in 2026

• Rates took effect January 1, 2026, and must be applied immediately.
  
  

• Minimum wage impacts daily salary calculations, SDI, severance pay, and seniority bonus formulas.
  
  

• The correct wage must be applied based on the location where the employee performs the work.
  
  

• Non-compliance exposes employers to fines, IMSS recalculations, and retroactive payroll corrections.
  
  

Mexico has consistently raised minimum wages each year, and 2026 continues this trend toward stronger worker protections and improved economic balance.

Minimum Wage by Region (General Zone vs. Border Zone Explained)

Mexico uses two official minimum wage regions, and each zone has its own economic purpose. The General Zone covers most of the country, while the Northern Border Free Zone applies to specific municipalities along the U.S. border.

These areas operate under a higher minimum wage because they face stronger economic activity, higher living costs, and greater competition for talent.

Understanding which zone applies is important for payroll compliance, especially when hiring remote or hybrid employees in Mexico.

• General Zone applies to the majority of Mexican states and municipalities. It represents the standard wage level used nationwide for most industries and roles.
  
  

• Northern Border Free Zone includes municipalities within 25 kilometers of the U.S. border. These locations receive a higher wage due to higher consumer prices, increased mobility with the U.S., and government policies meant to support border development.
  
  

• Key cities and municipalities in the Free Zone include Tijuana, Mexicali, Ensenada, Tecate, Ciudad Juárez, Reynosa, Matamoros, Nuevo Laredo, Piedras Negras, and others.
  
  

• Different wage levels help balance regional economic conditions and maintain fair pay for employees.
  
  

These zones ensure wages match local realities, and employers must classify employees correctly for full compliance.

Professional Minimum Wages in Mexico (Trades and Specialized Roles)

Mexico also uses a system called professional minimum wages, which sets specific pay floors for certain skilled trades and occupations. These rates apply to jobs that require technical knowledge, certification, or specialized training.

Professional minimum wages are reviewed annually by CONASAMI and increased in tandem with the general minimum wage.

For 2026, these professional rates increased by approximately 13 percent, keeping them in line with inflation and labor market changes.

• Meaning of professional minimum wage
  This is the mandatory minimum pay for skilled roles such as technicians, operators, and certified trade workers. It ensures employees with specialized abilities receive fair compensation that reflects their training.
  
  

• Covers 61 official professions
  Mexico lists 61 occupations with their own minimum wage level. These include technical, industrial, agricultural, administrative, and service-related roles.
  
  

• Examples of professions with higher minimums
  Roles like nurses’ aides, welders, electricians, lab technicians, bilingual secretaries, drivers, and carpenters have their own minimum daily rates above the general zone wage.
  
  

• Why these rates matter
  Employers must respect the specific wage assigned to the employee’s actual job classification, especially when hiring through an EOR.
  
  

Overall, professional minimum wages protect skilled workers and help employers maintain compliant, competitive pay standards in Mexico.

How Mexico Calculates Minimum Wage (Daily, Not Monthly)

Mexico calculates the minimum wage per day, not per hour or per month. This daily-pay system is written into the Federal Labor Law and applies to every employee, regardless of industry or schedule. Because the law sets wages in daily terms, any monthly salary you see online is usually just an estimate.

Employers, payroll processors, and EORs convert the daily rate into a monthly figure to help companies understand the real cost of hiring full-time staff.

• Daily wage system
  Minimum wage is defined as the legal amount an employee must earn per day of work, based on an eight-hour shift. Mexico does not publish hourly or monthly minimums.
  
  

• Standard monthly estimate
  Payroll teams commonly multiply the daily rate by 30 days to estimate a full-time monthly salary. This is a calculation method, not a legal requirement.
  
  

• Monthly equivalents for 2026
  General Zone: around MXN $9,372 per month.
  Border Zone: around MXN $14,053 per month.
  
  

• Why do monthly figures vary across sources
  Some use 30 days, others use 30.4 or 31 days based on calendar months. This creates small differences, even though the legal reference is always the daily rate.
  
  

These conversions help employers budget correctly, but compliance always depends on the daily wage paid to each employee.

How Minimum Wage Is Set and Updated Each Year (CONASAMI)

Mexico reviews and updates its minimum wage every year through CONASAMI, the National Commission on Minimum Wages. This commission is an independent authority made up of government representatives, employer groups, and worker organizations.

Their role is to decide how much the minimum wage should increase to protect employees while keeping the economy stable. The new rates take effect on January 1 each year, and employers must apply them immediately.

• Annual review process
  CONASAMI studies national economic data and holds meetings with employer and worker representatives. The goal is to balance fair wages with economic growth.
  
  

• Key criteria used in decisions
  Inflation levels, overall cost of living, productivity trends, and social policy goals all influence the final percentage increase. Border-zone wages are analyzed separately due to different economic pressures.
  
  

• December announcements
  New wage rates are usually approved and published in December, so companies have time to update payroll systems before the new year begins.
  
  

• Independent authority
  As the official body responsible for wage policy, CONASAMI ensures that the process remains transparent and based on measurable economic conditions.
  
  

This structured approach keeps Mexico’s minimum wage aligned with real-world living costs and supports compliance for all employers.

Who Must Follow the Minimum Wage Law in Mexico?

Mexico’s minimum wage rules apply to every employee working inside the country, no matter the industry, schedule, or nationality. The Federal Labor Law sets a strict legal floor, meaning no employer can pay less than the daily minimum wage for the employee’s zone.

These rules protect all workers and ensure fair compensation across both the general zone and the Northern Border Free Zone. Any company hiring in Mexico must follow these standards, including foreign companies operating through an EOR.

• Applies to all private-sector employees
  Every person hired by a company must receive at least the legal daily wage. This includes office staff, technicians, service roles, and field teams.
  
  

• Covers full-time, part-time, and remote employees
  Minimum wage applies even if the employee works fewer hours. Their daily pay may be prorated, but the daily rate itself cannot fall below the legal minimum.
  
  

• Foreign workers and foreign employers
  Any foreign national working legally in Mexico is entitled to the same minimum wage protection as Mexican citizens.
  
  

• Enforcement under the Federal Labor Law
  Labor inspectors, IMSS, and the Labor Ministry monitor compliance. Employers who pay below the minimum face fines, back-pay obligations, and legal disputes.
  
  

These rules create a consistent national standard and ensure employers treat all employees fairly and legally.

Minimum Wage vs. Real Salaries in Mexico

While Mexico’s minimum wage sets the legal floor, most employees in the country earn more than the official daily rate.

Real salaries vary by industry, skill level, region, and company size. In many professional sectors, the minimum wage has little practical impact because market salaries are already much higher.

Instead, minimum wage rules are most relevant for lower-income regions, entry-level jobs, and industries where pay levels are closely tied to basic labor standards.

• Many industries pay above minimum wage
  Technology, finance, engineering, automotive, and pharmaceutical roles usually offer salaries well above the required minimum because they demand higher skills and training.
  
  

• Skilled professionals earn significantly more
  Employees such as accountants, designers, nurses, IT specialists, bilingual staff, and technicians are typically compensated based on experience and market demand.
  
  

• Industries most affected by the minimum wage
  Entry-level positions in retail, hospitality, agriculture, and manufacturing are the most directly influenced by minimum wage increases.
  
  

• Regional impact
  Rural areas and smaller cities rely more on minimum wage guidelines compared to major hubs like Mexico City, Monterrey, or Guadalajara, where salaries are higher.
  
  

Overall, minimum wage serves as a foundation for fairness, while real salaries reflect market conditions and workforce skills across Mexico.

Historical Minimum Wage Increases in Mexico (Past 8 Years)

Over the past decade, Mexico has made major changes to its minimum wage policy. The biggest shift began in 2019, when the government committed to raising wages to reduce poverty and strengthen purchasing power.

Since then, minimum wages have increased every year, often at double-digit rates. These adjustments helped close the gap between wages and real living costs, especially in regions where salaries were historically low.

The Northern Border Free Zone saw even faster growth because of strong economic activity and higher consumer prices along the U.S. border.

• 2019 reforms
  General Zone: MXN $102.68
  Border Zone: MXN $176.72
  Marked the start of Mexico’s modern wage-recovery strategy.
  
  

• 2020 increases
  General Zone: MXN $123.22
  Border Zone: MXN $185.56
  Continued national push to strengthen basic income.
  
  

• 2021 increases
  General Zone: MXN $141.70
  Border Zone: MXN $213.39
  Larger rise to support inflation pressures and border-zone living costs.
  
  

• 2022 expansion
  General Zone: MXN $172.87
  Border Zone: MXN $260.34
  Double-digit raise for stronger purchasing power.
  
  

• 2023 expansion
  General Zone: MXN $207.44
  Border Zone: MXN $312.41
  Helped reduce income inequality nationwide.
  
  

• 2024 update
  General Zone: MXN $248.93
  Border Zone: MXN $374.89
  Increase aligned with inflation and economic policy.
  
  

• 2025 rates
  General Zone: MXN $278.80
  Border Zone: MXN $419.88
  Focused on maintaining wage stability during a year of moderate inflation and continued economic recovery
  
  

• 2026 rates
  General Zone: MXN $312.41
  Border Zone: MXN $468.45
  Current official rates effective January 1, 2026.
  
  

These consistent increases show Mexico’s long-term commitment to strengthening wages and improving living standards nationwide.

Employer Compliance Requirements With Minimum Wage

Employers in Mexico must follow strict rules when paying employees, and the Federal Labor Law makes minimum wage compliance a legal obligation.

Every employee must receive at least the required daily minimum wage for their zone, and payroll records must clearly show this amount. Companies cannot negotiate below the minimum, even if the employee agrees.

These requirements apply to all employers, including foreign companies hiring through an EOR. Proper compliance reduces legal risk and protects employees’ rights.

• Federal Labor Law obligations
  The law requires employers to pay wages that meet or exceed the official daily minimum. Articles in the LFT reinforce fair pay, transparency, and timely payment.
  
  

• The correct daily rate must be applied
  Payroll must reflect the official daily wage for either the General Zone or the Northern Border Free Zone. This ensures full legal compliance.
  
  

• No exceptions or reductions allowed
  Employers cannot lower wages below the minimum level under any circumstances. The minimum is a mandatory legal floor.
  
  

• Penalties for non-compliance
  Paying below minimum wage can result in fines, required back pay, legal claims, and audits from labor authorities. Disputes are often resolved in favor of the employee.
  
  

Meeting these requirements helps companies operate safely in Mexico and avoid costly legal problems.

How Minimum Wage Impacts Payroll, Taxes, and Benefits

Minimum wage plays a direct role in how payroll, taxes, and benefits are calculated in Mexico. Because the country uses a daily wage system, many legal formulas start with the employee’s base daily rate.

When the minimum wage increases, it affects several payroll components, especially Social Security calculations and benefits tied to the Integrated Daily Salary (SDI).

Employers must apply these rules correctly to stay compliant with the Federal Labor Law and Social Security Law.

• Social Security contributions
  IMSS calculations use the employee’s SDI, which cannot be lower than the legal minimum wage. A higher minimum wage can raise the SDI base for some employees.
  
  

• Integrated Daily Salary (SDI)
  SDI includes the daily wage plus certain benefits such as vacation premium, Christmas bonus, and allowances. Minimum wage acts as a floor for this calculation.
  
  

• Impact on mandatory benefits
  Vacation pay, Christmas Bonus (Aguinaldo), and profit sharing (PTU) all rely on the employee’s daily wage. When the minimum wage increases, these mandatory payments also rise.
  
  

• Importance of accurate calculation
  Incorrect wage or SDI calculations lead to underpayment, IMSS discrepancies, fines, and legal disputes.
  
  

A correct minimum wage application ensures fair compensation and keeps employers fully compliant in Mexico.

Minimum Wage and Independent Contractors

Independent contractors in Mexico follow a completely different legal framework from employees, and minimum wage rules do not apply to them.

Contractors operate as service providers, not as workers under an employment relationship. Because of this, they must issue CFDI invoices, manage their own taxes, and use their own tools or resources.

However, many companies misunderstand this distinction, and misclassification has become a major legal risk in Mexico, especially for foreign employers entering the market.

• Contractors must issue CFDI invoices
  A legitimate contractor is registered with the tax authority (SAT) and bills clients through official electronic invoices.
  
  

• Minimum wage does not apply
  Contractors set their own rates and are not protected by daily minimum wage laws because no employment relationship exists.
  
  

• Misclassification risk
  If a contractor works only for one company, follows schedules, receives supervision, or operates like an employee, they can legally claim full employee status.
  
  

• Possible claims include
  Minimum wage, IMSS rights, vacation, Aguinaldo, PTU, and even 90-day severance if the relationship ends.
  
  

• Why foreign companies must be careful
  Mexico enforces strict rules on subordination. Misclassification leads to fines, back payments, and legal disputes.
  
  

Using the correct structure protects companies and ensures compliance when operating in Mexico.

How an EOR Helps Companies Meet Minimum Wage Compliance in Mexico

Minimum wage compliance in Mexico is more complex than it looks, especially for foreign companies that are not familiar with zone-based wages, daily pay rules, and SDI calculations.

An Employer of Record (EOR) removes this risk by becoming the legal employer in Mexico and ensuring every payroll process meets federal requirements. This protects both the employee and the client company from costly mistakes, miscalculations, and labor disputes.

• Correct zone-based wage classification
  The EOR verifies the employee’s physical work location and applies the proper minimum wage for either the General Zone or the Northern Border Free Zone.
  
  

• Ensures salaries meet or exceed legal minimums
  All employment contracts and payroll setups are reviewed to guarantee compliance with daily minimum wage laws.
  
  

• Accurate SDI and IMSS calculations
  SDI errors are one of the biggest compliance issues for foreign employers. The EOR calculates daily wage, benefits integration, and IMSS bases correctly.
  
  

• Tracks annual CONASAMI updates
  The EOR automatically updates payroll each January with the new minimum wage rates.
  
  

• Prevents underpayment claims
  Proper documentation, payroll accuracy, and compliant contracts reduce the risk of disputes, audits, and penalties.
  
  

With an EOR, companies can hire confidently in Mexico while ensuring full wage and payroll compliance.

Why Foreign Companies Choose HRM for Mexico Hiring

Hiring in Mexico requires more than just payroll software. Companies must follow strict wage rules, zone classifications, IMSS requirements, and Federal Labor Law obligations. This is why many global employers choose Human Resources Mexico (HRM) as their trusted partner.

HRM is not a platform-only EOR. It is a real Mexican employer with a full physical presence in Mexico for more than 16 years, offering hands-on support to both employees and client companies.

• Fully REPSE-registered
  HRM is legally authorized to operate as an Employer of Record in Mexico, unlike platform-based EORs that rely on undisclosed partners or shell entities.
  
  

• Real bilingual HR team
  Employees receive direct human support for payroll, benefits, documentation, and compliance matters.
  
  

• Transparent pricing with no hidden fees
  HRM charges one total-cost markup with no onboarding fees, termination fees, FX costs, or extras.
  
  

• Strict compliance with LFT and minimum wage rules
  HRM ensures correct zone classification, daily wage compliance, SDI accuracy, and legally compliant contracts.
  
  

• Comprehensive HR management
  HRM handles payroll, benefits, taxes, IMSS registration, CFDI issuance, onboarding, offboarding, and all employment administration.
  
  

• Mexico-only expertise
  HRM focuses solely on Mexico, giving clients unmatched knowledge of local labor laws and wage regulations.
  
  

HRM protects employers from wage-related fines and ensures safe, compliant hiring in Mexico.
Reach out today and get a custom proposal for your Mexico hiring needs

FAQs About Minimum Wage in Mexico

What is the minimum wage in Mexico for 2026?

For 2026, the daily minimum wage is MXN $312.41 in the General Zone and MXN $468.45 in the Northern Border Free Zone. These rates took effect on January 1, 2026, and all employers must apply the correct wage based on where the employee performs the work. Paying below the minimum wage can lead to fines, back payments, and payroll corrections.

Why is the border zone wage higher?

The Northern Border Free Zone has a higher wage because living costs, economic activity, and competition for talent are much stronger near the U.S. border. The government sets a higher rate to support purchasing power and stabilize the labor market in these high-cost municipalities.

Do part-time workers get minimum wage?

Yes. Part-time employees must receive the legal minimum wage, calculated on a daily basis. While their pay may be prorated based on hours worked, the daily rate itself can never fall below the official minimum wage for their zone.

Are professional wages different?

Yes. Mexico has professional minimum wages for 61 specialized roles such as technicians, operators, nurses’ aides, and bilingual secretaries. These roles have higher daily minimums because they require technical skills or certification. Employers must use the correct wage based on the employee’s job classification.

How often is the minimum wage updated?

Minimum wage is reviewed and updated every year by CONASAMI. New wage levels are usually approved in December and applied on January 1. This annual update helps keep wages aligned with inflation and economic policy. Employers must update payroll immediately to remain compliant.

Does minimum wage apply to remote workers?

Yes. Minimum wage applies to all employees physically working in Mexico, including remote workers. The wage zone is determined by where the employee performs their work, not the employer’s location. Companies hiring remotely must ensure they meet the correct zone-based daily rate.

Can foreign employers pay below minimum wage?

No. Foreign employers must follow Mexican labor law when hiring in Mexico. Paying below minimum wage is illegal and can lead to fines, back pay, IMSS issues, and labor disputes. Working with a compliant EOR like HRM helps foreign companies avoid underpayment violations.