Minimum Wage

August 1, 2012
Minimum Wage

Mexico’s Federal Labor Law (LFT) establishes that the legal minimum wage is the minimum amount that anemployee must receive for services rendered during a working day. The LFT also provides that the minimumwage should be sufficient to meet the normal material, social and cultural needs of a head of household, and toprovide for the mandatory education of his/her children. The minimum wage is classified as: (i) GeneralMinimum Wage, which is the established wage to be applied to one or more states in the Mexican Republic,divided into three geographic zones as explained below; and (ii) Minimum Professional Wage, which is theestablished wage to be applied to professions, occupations or special employment within one or severalgeographic zones. For purposes of regulating minimum wages, the National Minimum Wage Commission(Comisión Nacional de Salarios Mínimos or CONASAMI) divides the country into three geographic zones andmakes an annual determination as to the applicable amount for each zone. CONASAMI is a tripartitecommission comprised of employees, employers and government representatives. The minimum wage bygeographic zones may be seen on the CONASAMI website, available at: . For 2012, theminimum wage for each geographic zone is the following: (A) for geographic zone “A,” the general minimumdaily wage is $62.33 pesos; (B) for geographic zone “B,” the minimum daily wage is $60.57 pesos; and (C) forgeographic zone “C,” the general minimum wage is $59.08 pesos. As a result, employees have a right to receivewages that may not be less than the general minimum wage or general professional wage established byCONASAMI, as applicable to each geographic zone. Wages should be determined in accordance with thequantity and quality of services rendered by the employee. Such wages should be paid weekly or bi-weekly, asthe case may be, on the day and time stipulated, and at the location where the employee renders services. It isimportant for companies to correctly pay wages to their employees, given that failure to do so may result in fines and other penalties imposed by the Mexican Department of Labor and Social Welfare (Secretaría del Trabajo yPrevisión Social) during their routine inspection visits to companies.

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