The Mexican government has confirmed increases to the national minimum wage and published the Economic Package for the 2026 fiscal year. Together, these measures introduce updated wage thresholds, tighter tax enforcement, and a continued focus on fiscal consolidation, all of which will have implications for payroll, compliance, and workforce planning for organisations operating in Mexico from 1 January 2026.
From 1 January 2026, the following daily minimum wage rates will apply in Mexico:
The general minimum wage increase represents a 13 per cent rise compared with 2025, while the Northern Border Free Zone rate increases by 5 per cent. Employers should review payroll calculations, employment contracts, and statutory benefits that are linked to minimum wage levels, including social security contributions and other employment-related entitlements.
On 7 November 2025, the Federal Executive Branch published the Economic Package for the 2026 fiscal year, including the 2026 Tax Reform. The reforms introduce a significant tightening of tax enforcement, with a strong focus on electronic invoicing, the substance of transactions, and expanded powers for the Mexican Tax Authority (SAT). Key developments include:
The 2026 Economic Package reflects the government’s broader objective of strengthening public finances. Continued fiscal consolidation aims to improve revenue collection and manage public expenditure following a period of elevated public deficits. Ongoing pressures related to social spending and pensions highlight the importance of sustained fiscal discipline over the medium term.
Employers should assess the impact of the minimum wage increases on payroll costs and ensure systems are updated ahead of implementation. In parallel, enhanced tax enforcement increases compliance and operational risk, particularly for organisations with complex invoicing arrangements, digital platform activity, or cross-border operations. Reviewing internal controls, tax governance frameworks, and payroll processes will be critical to managing risk in 2026.
If you would like to understand how these minimum wage increases and fiscal reforms may impact your payroll, mobility, or HR policies, please get in touch. Complete our Contact Us form, and a member of our expert team will be happy to assist with your queries.