On December 7, 2022, the resolution of the Council of Representatives of the National Commission for Minimum Wages )CONASAMI) was published in the Federal Official Gazette, through which the increase in minimum and professional wages was established. The latter will be valid as of January 1 up to December 31, 2023.

CONASAMI has until December 31 to establish the minimum wage, and professional minimums, in accordance with the provisions of the Federal Labor Law.

As has already been done in recent years, CONASAMI decided to continue with the Independent Recovery Amount, and later grant 10%, which in sum gives us a 20% real increase, to keep the minimum wage in the following amounts: (i) in the free zone it will be $312.41 pesos; and (ii) in the rest of the country it will be $207.44 pesos.

It is very important to consider that the indicated percentages are only and exclusively for the tabulators in which there are minimum wages, or professional minimums. However, it is also a very important indicator for the review of collective bargaining agreements, and even more so now that one of the highest inflation rates in recent years in the country will be experienced.

The increase that was granted to contractual salaries should also be considered, since the inflation forecasted in January 2022 was lower than that with which we are expected to close that year. The consequence of the above is that the tabulators that had been revised with the original forecast would remain below inflation, unlike those tabulators that are revised with year-end inflation. For the former, it should be thinking about at least compensating the purchasing power of the employees.

It is worth mentioning that, since the decision was made to significantly increase minimum wages, these ceased to be a parameter for the increase in contractual wages, due the latter are reviewed in relation to the possibilities and productivity of the companies, as well as the conditions of the tabulators of the collective labor contracts.

Minimum Wages in force as of January 1, 2023

Geografic Area	Amount In Force 2022	Independent Recovery Amount (MIR)	Fixation Increase (%)	Amount In Force 2023	Total Increase (%)
North Border Free Zone	$260.34	$23.67	10%	$312.41	20%
Rest of the Country	$172.87	$15.72	10%	$207.44	20%

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