April 19, 2021

Decree Amending and Supplementing Article 90 of the Mexican Federal Labor Law

By Pablo Sáenz and Fernanda Magallanes

A Decree published in the Official Journal of the Federation on March 30, 2021, amends and supplements Article 90 to the Mexican Federal Labor Law.

The main purpose of this amendment is to guarantee that the yearly review of the minimum wage, is set at a level above the inflation rate. With such change, the minimum wage will never be lower than the inflation rate during its established term, or in other words, during the year for which the minimum wage was set.

The amendment’s purpose is to adjust the minimum wage to actual costs of basic goods and services based on sustained and generalized increases in costs reflected in the National Consumer Price Index. Such inflationary increase causes a change in the basic goods and services basket, which is comprised of main expenses borne by a high percentage of Mexican households.

This amendment seeks to protect the purchasing power of Mexican workers by providing for a sufficient wage for the head of a household to cover basic material, social and cultural needs, as well as compulsory education of minors.