Impact on the Minimum Wage Increase in Mexico
Knowledge of Labor Market Benefits Companies Manufacturing in Mexico Beyond Minimum Wage Adjustments
As of January 1, 2012, Mexico put into effect a new minimum wage salary structure for each of three geographic zones based on recommendations made by the Representative Counsel for the National Commission of Minimum Wages. The new salaries represent an increase of 4.2% to the general minimum daily wages.
Daily Wages for each geographic area are set as follows:
“A” $62.33
"B" $60.57
"C" $59.08
Area “A” includes Mexico City, Tijuana, Ciudad Juarez, Nogales and Matamoros, among others.
Area “B” includes Guadalajara, Monterrey, Hermosillo and Tampico, among others.
Area “C” includes areas such as Aguascalientes, Campeche, Coahuila, Guanajuato, Hidalgo, Michoacan. Puebla,and Queretaro, among others.
With a minimum salary set at 62.33 pesos/day in the most expensive zones of the country, this base salary converts to approximately 4.8 U.S. dollars per day, at current exchange rates. Companies with experience in Mexico use the minimum wage as a starting point. It is very common that companies will pay higher than minimum wage to attract and retain a competent and experienced labor force.
North American Production Sharing, Inc. (NAPS) assists clients in designing salary structures that ensure companies remain both competitive and profitable. NAPS works closely with each client analyzing specific needs as well as wages and incentives that are tailored for each market.
For companies setting up operations in Mexico, increases in salaries are often offset by currency exchanges. When evaluating overseas locations, it is important to assess production costs as a whole, including transportation and shipping costs. Mexico is working with industry and governmental agencies to develop special training and linkage programs that tie in directly with specific industries. These programs produce workers that are educated and motivated. The abundance of a young, highly skilled labor force plays a significant role in positioning Mexico as a key player in supplying the US and Canadian markets.
As a company that has capably managed personnel in Mexico for 20 years, NAPS plays a key role in ensuring that employee turnover remains low, that employees are fairly compensated and treated with dignity and respect. The ongoing success of 50 client companies and more than 5,000 employees under management is a testimonial to the best practices that have become an integral part of the NAPS’ business model.
Monica Hanono
Industry Liaison & Marketing Analyst
monica.hanono@napsmexico.com
phone: 858-794-7947
toll free: 800-551-8581
About NAPS
NAPS is a premier shelter company in Mexico providing start-up and ongoing administration for companies manufacturing in Mexico. NAPS facilitates the relocation and expansion of labor intensive processes mainly along the border region of Mexico. Since 1991, NAPS has played a key role in ensuring the success of 70 Mexico manufacturing operations including: Esterline, Hewlett Packard, Intuitive Surgical, JAE, Monster Cable, Parker Hannifin, Speck Products, Toyota & Qualcomm. For more info about NAPS and the shelter services in Mexico we offer please visit www.napsmexico.com
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