Mexican Border Minimum Wage Set To Double Jan. 1

By Murphy Woodhouse
Published: Wednesday, December 19, 2018 - 5:12pm
Updated: Wednesday, December 19, 2018 - 5:21pm
Murphy Woodhouse/KJZZ
Many in Nogales, Arizona are hoping the hike in the Mexican minimum wage will result in more shopping on the U.S. side.

On Jan. 1, the Mexican minimum wage along the border with the United States will double. From the current 88 pesos — or $4.40 a day — it will jump to nearly 177 pesos, or roughly $9. Elsewhere in the country the wage will rise more modestly to a little more than $5 per day.

The hike was one of a number of campaign promises of President Andres Manuel Lopez Obrador, widely known as AMLO.

“It’s way to dignify working men and women with a better lifestyle,” said Gerardo Vazquez, state head of Index, which represents export manufacturers.

He also pointed out that many export factories — or maquiladoras — are already paying roughly double the minimum wage in places like Nogales, Sonora. Nevertheless, maquila officials in Nogales, Sonora previously told KJZZ that some wage increases beyond what is legally mandated may still be necessary to keep workers.

AMLO has also promised substantial tax reductions in the border zone.

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