Mexico's Minimum Wage Increase

MEXICO CITY (Reuters) – Mexico's government announced on Wednesday that it will raise the minimum wage by 12% starting next year to assist the poorest workers. The new leftist president emphasizes that this increase will not lead to inflation and aims to foster a "humanist" economy.

The announcement was made by Labor Minister Marath Bolanos during a regular morning press conference.

Currently, the minimum wage in Latin America's second-largest economy is nearly 249 pesos ($12.23) a day. This follows significant hikes in recent years by the previous leftist administration, which supporters hailed as a key achievement.

The increase is a result of an agreement between the labor and business sectors, Bolanos noted.

"We continue on the path to rebuild the minimum wage and the purchasing power of Mexican men and women," she stated.

President Claudia Sheinbaum, who assumed office in October, has committed to raising the minimum wage by approximately 12% annually.

($1 = 20.3550 Mexican pesos)