# Constitutional Reform Ensures Minimum Wages Will Never Fall Below Inflation
On September 24, 2024, the Mexican Chamber of Deputies overwhelmingly approved amendments to Article 123 of the nation’s Constitution, guaranteeing that the annual setting or revision of general or professional minimum wages will never fall below the inflation rate observed during their effective period. This decision was made with a qualified majority of 478 votes in favor.
The amendment targets both Section A and Section B of Article 123. Specifically, full-time teachers at the basic education level, police officers, National Guards, members of the permanent Armed Forces, as well as doctors and nurses, are ensured minimum monthly wages that will not be lower than the average wage registered with the Mexican Social Security Institute (IMSS).
The reform states that starting from January 1, 2024, the minimum monthly wage would be 16,777.78 pesos, which corresponds to the average monthly salary registered in 2023 at the IMSS, adjusted for the estimated inflation for 2024. This wage amount will be updated annually in line with inflation rates.
This legislative reform follows an initiative proposed by the President of Mexico on February 5, 2024, and was developed by the Constitutional Points Commission of the LXV Legislature. The reform has now been sent to the Senate for further constitutional proceedings.
Deputy Pedro Miguel Haces Barba of the Morena party presented the bill, emphasizing its goal to improve the working conditions of Mexican workers by ensuring dignified wages. Haces Barba highlighted that the revision aims to shift wage policy to guarantee that minimum wages do not fall below inflation, thus maintaining the real purchasing power of workers.
He stressed the importance of this reform in achieving justice for historically underpaid sectors, acknowledging the critical roles of educators, security personnel, and healthcare professionals in society. This reform also aims to make Mexico a more attractive destination for investment by showcasing the capacity of its workforce.
During the specific discussion, deputies from Morena, the National Action Party (PAN), the Green Party (PVEM), the Labor Party (PT), and the Institutional Revolutionary Party (PRI) presented various reservations, which were either withdrawn or rejected and thus dismissed.
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## Secondary Article: Economic Experts React to Minimum Wage Reform
The recent constitutional amendment to guarantee that minimum wages in Mexico never fall below inflation has sparked discussions among economic experts and labor activists.
Dr. Ana López, an economist at the National Autonomous University of Mexico (UNAM), hailed the reform as a monumental step towards wage justice. “For too long, Mexican workers have seen their real wages eroded by inflation. This constitutional safeguard ensures that wages keep pace with living costs,” she said.
Similarly, labor activist Marco Gómez from the Autonomous Confederation of Workers and Employees of Mexico (CATEM) believes that this reform could lead to better income equality. “This is a critical move to lift many workers out of poverty and ensure decent living conditions,” he remarked.
On the other hand, some business leaders expressed concerns about potential impacts on small and medium enterprises. Antonio RÃos, a representative from the Mexican Employers’ Confederation (COPARMEX), warned that while the policy is well-intentioned, it may increase operational costs, particularly for smaller businesses already struggling with economic uncertainty. “The government must accompany this measure with support programs for small businesses to prevent layoffs,” he suggested.
The reform has also garnered international attention. Economist John Hopkins from the International Monetary Fund (IMF) commented, “This policy could serve as a model for other developing countries facing similar challenges with wage stagnation and inflation.”
As the reform heads to the Senate, the debate continues on how best to implement and support this significant change in Mexico’s wage policy, ensuring fair compensation for workers while maintaining economic stability and growth.