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Mexico - Minimum Wages - 2011


LAST UPDATE

22 June 2011
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SOURCES


Name of Act

Federal Labour Act, 2 December 1969 (Diario Oficial No. 26, 1 April 1970, p. 1; errata: ibid. No. 51, 30 April 1970, p. 2 and No. 29, 5 June 1970, p. 16), in amended form until January 17, 2006 (Diario Oficial, January 17, 2006).
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Name of Act

Resolution of the Council of Representatives of the National Minimum Wage which sets the General and the Proffesional minimum wages from January 1st, 2011.

Name of Act

Political Constitution of the United States of Mexico of 1917 (Constitución Politica de los Estados Unidos Mexicanos, Diario Oficial de la Federación el 5 de febrero de 1917, errata: ibid., 6 February 1917), as amended up, to 13 April 2011.
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Name of Act

General Regulation of inspection and sanctions for violations of Labor Laws (Reglamento general para la inspección y aplicación de sanciones por violaciones a la legislación laboral), of 6 July 1998.

LEGAL DEFINITIONS


Employee/worker

The term "employee" shall mean any individual who renders work to another individual or legal entity.
Federal Labour Act Art.8

Employer

The term "employer" shall mean any individual or legal entity using the services of one or more worker(s).
Federal Labour Act Art.10

Wage

The term "wage" shall mean the compensation that an employer must pay the worker for the work carried out.
Federal Labour Act Art.82

Minimum wage

The term "minimum wages" shall mean the smallest cash payment that a worker shall receive for services performed during the hours of work.
Political Constitution of the United States of Mexico Art.123(VI)
Political Constitution of the United States of Mexico Art.90

MINIMUM WAGE FIXING


Procedure


Procedure in general

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Minimum wages set directly by tripartite negotiations

There are two types of minimum wages in Mexico:
1) General minimum wages that apply to all workers and vary according to Region A, B or C; and 2) Occupational minimum wages that are higher than the general minimum wages.
Both occupational minimum wages and general minimum wages are fixed by the National Commission on Minimum Wages. The National Commission on Minimum Wages is a tripartite institution made up of representatives from the government, employers and workers.
Special boards may be appointed to provide advice to the National Commission on Minimum Wages.
Political Constitution of the United States of Mexico Art.123(VI)
Federal Labour Act Art.94,95,96,551
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Minimum wage set through decentralized collective bargaining

Wages can be fixed by collective agreement.
The legislation is unclear as to whether wages fixed by collective agreement can be lower than minimum wages.
Federal Labour Act Art.386, 391 (VI)

Criteria


Needs of workers and their families

Yes. The National Commission on Minimum Wages shall consider the investigations and studies carried out to set the minimum wages according to the budget that a family may require to cover material needs, such as accomodation, household goods, food, clothing and transport; social and cultural needs, such as the assistance to live performances, the performing of sports, the use of libraries and other cultural activities; and the needs related to the education of the children.
Federal Labour Act Art.90, art.562.II(a)

Cost of living

Yes. The National Commission on Minimum Wages shall carry out investigations and studies for determining the variations in the cost of living per family, before fixing the Minimum Wages.
Federal Labour Act Art.562(Ic)

Level of wages and incomes in the country

Yes. The National Commission on Minimum Wages shall carry out investigations and studies for determining the conditions of the labour market and wages levels, before fixing the Minimum Wages.
Federal Labour Act Art.562(Id)

Economic development

Yes. The National Commission on Minimum Wages shall carry out investigations and studies for determining the country’s overall economic situation, before fixing the Minimum Wages.
Federal Labour Act Art.562 (Ia),(III)

Level of employment

Yes. The National Commission on Minimum Wages shall carry out investigations and studies for determining the conditions of life and work, before fixing the Minimum Wages.
Federal Labour Act Art.562(IIb)

Inflation rate

Yes.
Federal Labour Act Art.562

Other provisions

The National Commission on Minimum Wages shall consider the investigations, studies and suggestions made by the organizations of employers and workers, before fixing the Minimum Wages.
Federal Labour Act Art.562 (IV)

Coverage


Scope

Minimum wage legislation applies to workers in the private sector. The minimum wage to be received by a worker shall be either: 1) the general minimum wage rates that apply to all workers and vary according to geographic area A, B or C; or 2) the occupational minimum wage rate (higher than the general minimum wage rates).

There are three different general minimum wages and eighty-six different occupational minimum wages fixed by the National Commission on Minimum Wages.
Political Constitution of the United States of Mexico Art.123
Minimum Wages for 2011
Federal Labour Act Art.92,93
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Specific minimum wage rates


» Specific minimum wage by occupation

There are 72 different occupational minimum wages fixed by the National Commission on Minimum Wages. Minimum wages are set for occupations such as bricklayers, drugstore salespersons, cashiers, bartenders, carpenters, brush operators, chefs, mattress producers, shoe makers, tailor, car drivers, bus drivers, truck drivers, furniture restorers, electricians, supermarket workers, nurses, gas station workers, locksmiths, jewellers or hairdressers.
Minimum Wages for 2011 Art.5

» Specific minimum wage by region

General minimum wages and occupational minimum wages vary by predetermined geographic area; geographic area A (Baja California, Federal District, State of Mexico, and large cities), B (Sonora, Nuevo León, Tamaulipas, Veracruz and Jalisco) and C (all other municipalities).
Political Constitution of the United States of Mexico Art.123(VI)
Minimum Wages for 2011 Art.1

Level


Minimum wage level(s) in national currency

Minimum wages are stipulated by day for 72 jobs. They are also divided in three geographic regions (region A, B and C).
For 2011 the general minimum wage per day for the capital area (region A) is 59.82 pesos. The minimum wage for region B is 58.13 pesos per day, and the minimum wage per day for region C is 56.70.
Minimum Wages for 2011 Art.2

Last minimum wage update

January 1, 2011
Minimum Wages for 2011

In-kind allowances

Payments in cash shall be made in legal currency, however it is permitted the payments in kind as a reasonable proportion of the salary perceived.

Payments in kind for the worker and for his family, such as garments or food, can be agreed between the parties as long as are not abusive or compulsory for the worker.
Federal Labour Act Art.101,102 and 103.
Political Constitution of the United States of Mexico Art.123A(X)

Rate of payment


» Daily

The general rate of payment set in for minimum wages is per day.
Minimum Wages for 2011 Art.2
Federal Labour Act Art.90

Specific provisions

Wages may be fix at time rate, piece-rate work, commission, at a standard rate or any other manner.

Payments shall be made within one week maximum for manual workers and 15 days for all other workers.
Federal Labour Act Art.83, art.88

Scheduled frequency of adjustment

Minimum wages are adjusted each year. Minimum wages can also be revised at any time if the economic circumstances justify such revision.
Federal Labour Act Art.570

Enforcement mechanisms


Labour inspection

Authorized labour inspectors may carry out inspections in order to ensure compliance with labour legislation.
Labour inspectors are also charge to provide technical information and advice to workers and employers on how best effectively enforce labor standards, to inform the authority of the deficiencies and violations of labor standards identified in the companies and establishments, prepare studies and collect data requested by the authorities necessary to promote the harmonious relations between workers and employers, and other powers conferred by the law.
Federal Labour Act Art.540
Regulation of inspection and sanctions for violations of Labor Laws. Art.8,9,10

Fines in national currency for non-respect of legislation

An employer who pays workers less than the general minimum wage shall pay a fine of:
a. Fifty times the general minimum wage when the difference between the minimum wage and the amount actually paid does not exceed the total of one month’s minimum wage
b. Up to one hundred times the general minimum wage when the difference between the minimum wage and the amount actually paid is between one month and three months’ minimum wage.
c. Up to two hundred times the general minimum wage when the difference between the minimum wage and the amount actually paid is equal to more than three months’ minimum wage.
Federal Labour Act Art.1004

Other penalties

In addition to the fines, an employer may be liable to imprisonment for between six months and four years, depending on the owed amount.

In the event of repeat offences, the fines shall be doubled.
Federal Labour Act Art.1004

Results generated on: 22nd July 2014 at 11:18:27.
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