The general minimum wage in Mexico will have an increase of 10.4 percent from December 1st, reported the Employers Confederation of the Mexican Republic (Coparmex).
The minimum wage will go to 88.36 pesos (4.71 dollars) per day compared to the current rate of 80.04 pesos per day as determined by the Council of Representatives of the National Commission of Minimum Wages (Conasami), said Coparmex in a statement.
Mexican President Enrique Peña Nieto said last month that he saw the renegotiation of NAFTA as a space to improve working conditions.
US trade representative, Robert Lighthizer, has said that the labour chapter of the treaty is complex and that the goal in the United States is to raise wages in Mexico as a measure to prevent companies from choosing to move their factories there due to the payment of lower wages.
Rafael Camarena, an economist at Grupo Financiero Santander Mexico explained that a 10 percent increase, or even 12 percent, could have a minimal impact on inflation, but a 15 percent increase or more could cause inflation and cause the Central Bank to raise interest rates.
Although few workers in Mexico earn the minimum wage, the Central Bank has said that increasing it could serve as a reference to pressure for generalized wage increases.