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Informative Bulletin
Labor Law

Minimum Wages Standardization Process in A and B geographical areas

March, 2015

Minimum Wages Standardization Process in A and B geographical areas

On March 19th, 2015, it was announced the beginning of a standardization process of the current minimum wages in A and B geographical areas, with the purpose of restoring workers? purchasing power.

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Based on an agreement entered on August 12th, 2014, by several productive sectors of the country discussing salary increases, finally on March 19th of 2015 the Mexican Government in alliance with the labor-management sectors agreed to gradually reduced the wage differentials between both areas until it is reached a unique minimum salary for the entire country, on the foregoing to regain employees? purchasing power, specially of those who have low incomes.

In this context, The National Commission of Minimum Wages (CONASAMI) made public a measure to standardize geographical areas A and B in a 50% fifty percent this upcoming April, leaving the possibility open if the economic conditions allows it, to achieve a 100% one hundred percent harmonization in order to have only a minimum wage this year, without affecting inflation and employment rates of the country.

At the moment, the minimum wage for geographical area ?A? is 70.10 pesos per day. This area includes the Federal District and its metropolitan area, the states of Baja California and Baja California Sur, the cities of Acapulco, Gro., Ciudad Ju�rez, Chih., Guadalajara, Jal. and its urban area, Monterrey, N.L., and its metropolitan zone,

Hermosillo, Son., Matamoros y Reynosa, Tamp. And Coatzacoalcos, Ver., among others.

For geographical area ?B? the minimum salary is 66.45 pesos per day. This wage applies in federal states such as Aguascalientes, Campeche, Coahuila, Colima, Chiapas, Durango, Guanajuato, Hidalgo, Michoac�n, Morelos, Nayarit, Oaxaca, Puebla, Quer�taro, Quintana Roo, San Luis Potos�, Sinaloa, Tabasco, Tlaxcala, Yucat�n y Zacatecas; as well as in specific districts of states some of which are Chihuahua, Guerrero, Jalisco, the State of Mexico, Nuevo Le�n, Sonora, Tamaulipas and Veracruz that are not in geographical area ?A?.

For additional information, you may contact any of the members of our Labor Practice Team.

M. Alejandro Ripoll-Gonz�lez

[email protected]

Emmanuel Ibarra-Castillo

[email protected]

Pablo Mora Dragicevic

[email protected]

Kelly Couto Gonz�lez

[email protected]

IMPORTANT NOTE: The information here contained is of general nature and for informative purposes only. Please consider that what is here stated does not apply circumstances of any individual or entity. We strongly recommend not performing any activity based on this information without the professional assistance of our lawyers considering your particular circumstances.

Our Labor Practice Team can gladly assist you in the following areas:

Counseling in Labor

Labor Litigation

Labor Due Dilligence

Labor Agreements

Bargaining Collective Agreements

Internal Labor Rules

Employer Substitution

Occupational Health and Safety

Migratory Matters

Expatriates

Preventive Actions

Labor Benefits Plans

Insurance

Liquidation of companies and severance

 
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