New Legislation Ties Minimum Wage to Inflation in Mexico
The Constitutional Affairs Committee approved a reform to Article 123 of Mexico's Constitution, ensuring minimum wages cannot be below inflation and barring their use for other purposes. The reform also mandates average IMSS salaries for key public professions.
In a move that could redefine economic stability and worker rights in Mexico, the Constitutional Affairs Committee, under the leadership of Deputy Juan Ramiro Robledo Ruiz (Morena), has approved a transformative reform to Article 123 of the Political Constitution. This new ruling, passed with resounding unanimity, promises to anchor minimum wages to inflation, a bold maneuver aimed at shielding workers from the often insidious effects of rising costs of living.
Inflation has long been the uninvited guest at the economic banquet, quietly eroding purchasing power and making a mockery of wage increases that don't keep pace with the cost of living. The newly approved reform tackles this head-on by ensuring that the annual setting and review of general and professional minimum wages will never fall below the inflation rate observed during their validity. This clever stipulation aims to preserve the real value of wages, protecting workers from the erosion of their earnings in times of economic upheaval.
