Mexico implements a significant increase to national minimum wage in 2026

Mexico recently increased the national minimum wage by 13% in the General Minimum Wage Zone and by 5% in the Northern Border Free Zone by 5%, effective 1 January 2026. Additionally, the Unit of Measurement and Update (UMA) will increase by 3.69% from 1 February 2026.

Key details

Increases in national minimum wage

The National Minimum Wage Commission approved the following increases in the national minimum wage, to take effect from 1 January 2026:

• A total increase of 13%, from MXN 278.80 to MXN 315.04 per day, for workers located in the General Minimum Wage Zone. This includes an adjustment of MXN 17.01 to the Independent Recovery Amount (“IRA”), which refers to an additional wage increase aimed at supporting the recovery of purchasing power of workers who receive minimum wages, and a 6.5% inflation-based increase on the previous minimum wage.

• A total increase of 5%, from MXN 419.88 to MXN 440.87 per day, for workers located in the Northern Border Free Zone (ZLFN). The Commission has chosen not to apply an IRA adjustment in the ZLFN for 2026.

Employers should be aware that the inflation-based percentage increase is typically used as a reference for collective bargaining and wage reviews to adjust employee wages in line with inflation, if required by their collective bargaining agreement (“CBA”).

Increase in UMA

The UMA is an annually updated indexed monetary reference in Mexican pesos, used to determine the payment amounts for obligations under federal and state laws, like fines, taxes, and certain social benefits. It essentially operates as a standardized unit to calculate various legal payments instead of directly referencing the national minimum wage. In respect of employee benefits, the UMA is used in calculating social security contributions and health insurance limits.

The National Institute of Statistics and Geography recently published the following values for the UMA for 2026:

• Daily: MXN 117.31, up from MXN 113.14 in 2025

• Monthly: MXN 3,566.22, up from MXN 3,439.46 in 2025

• Annual: MXN 42,794.64, up from MXN 41,273.52 in 2025

Employer action: ACT

Employers should assess their current pay structures, policies, and practices to ensure that all employees' wages align with the new national minimum wage requirements starting from the first full pay period on or after 1 January 2026. Additionally, employers should evaluate how the wage increase may impact employee benefits tied to the minimum wage.

Similarly, employers should review employment contracts and CBAs to determine how the increase in UMA may impact benefits, as well as adjust payroll systems for the higher UMA from 1 February 2026.

Written in collaboration with:

Sara Mónica Díaz Méndez

Senior Vice President, Director of People Solutions International / LATAM

sara.diaz@lockton.com (opens a new window)

Karla Díaz Madrigal

Manager, People Solutions International / LATAM, Lockton Mexico

karla.diaz@lockton.com (opens a new window)

Further Information

Increase in Minimum Wages by 2026 | National Commission on Minimum Wages | gob.mx (opens a new window)

Minimum wages in force as of January 1, 2026 are published in the Official Gazette of the Federation | National Commission on Minimum Wages | gob.mx (opens a new window)

UMA | National Institute of Statistics and Geography (opens a new window)