Increase in minimum wages represents a low labor cost for companies: Conasami

In the prelude to the discussion that will take place on the increase in 2023 minimum wagesthe National Minimum Wage Commission (Conasami) presented an analysis of the labor cost from previous years, where it is shown that this has been minimal for companies and therefore its impact on inflation is extremely small.

For the analysis, public data from the Mexican Social Security Institute (IMSS), as of December of the year prior to the start of the new minimum wage; “For example, a working person who in December 2021 earned 150 pesos a day required an additional 22.87 pesos a day to reach the new minimum wage of 172.87 pesos a day. which entered into force in January 2022; Those 22.87 pesos represent 15.2% of the salary that was already paid to him. Applying this procedure, it is possible to estimate the cost for the formal labor market”.

Thus, it details the Conasamithe labor cost in 2019 in most of the entities of the country it was 0.12%, since the increase in wages it was 16.2%; while in that year the Free Zone of the Northern Border (ZLFN) was created with an increase of 100% to go to 176.72 pesos per day, reporting a labor cost of 3.88 percent.

In 2020 the increase was 5% in the Free Zone of the Northern Border to reach 185.56 pesos per day and 20% in the rest of the country to reach 123.22 pesos per day. The labor cost was 0.01 and 0.39% for each zone, respectively.

In 2021, in the context of the covid-19 pandemic, the increase was 15% in both zones and was 213.39 pesos per day in the Free Zone of the Northern Border and 141.70 pesos per day in the rest of the country. That year the labor cost was 0.7% in the north of the territory and 0.4% in the rest of the country.

For 2022, an increase of 22% was granted in both zones, which was 260.34 pesos per day in the Free Zone of the Northern Border and 172.87 pesos per day in the rest of the country. The labor cost was 1.8% in the Free Zone of the Northern Border and 1.2% in the rest of the country.

This is why the Conasami considers that, given the low cost for companies that has had the increase in minimum salarythe impact that it can have on the inflation is minimal.

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