MEXICO CITY, Oct 9 (Reuters) - Mexico's Senate unanimously passed a constitutional reform ensuring that the country's minimum wage will be revised annually to at least match inflation. This decision is significant as approximately 40% of Mexicans earn the minimum wage or less, and the reform aims to establish a baseline for annual wage increases.
The previous administration under President Andres Manuel Lopez Obrador had already implemented some of the highest wage increases in decades. His successor, President Claudia Sheinbaum, has committed to annual minimum wage increases of around 12%.
The reform, which has already passed in the lower house, was proposed by Lopez Obrador before he left office. Congress is currently reviewing several constitutional reforms from his administration, including a controversial judicial reform that was approved last month.
Currently, the minimum wage in Mexico, the second-largest economy in Latin America, stands at 248.93 pesos ($12.80) per day. Sheinbaum's government aims to gradually raise the minimum wage to cover the cost of 2.5 basic food baskets, a standardized list of essential grocery items for two people, up from the current coverage of 1.6 baskets.
Ruling party Senator Oscar Canton stated, 'Mexicans' wages will no longer fall victim to inflation. We urgently need a Mexico where the minimum wage no longer sentences someone to a life of poverty.'
The reform will now be forwarded to state legislatures for voting, where it is expected to pass in most states.