Increase in the minimum wage, consequences of not updating it

The Council of Representatives of the National Commission on Minimum Wages resolved and approved a 12% increase in minimum wages, which came into effect as of January 1 of this year, updating the general minimum wage, increasing from $248.93 to $278.80 and in the Northern Border Free Zone from $374.89 to $419.88

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Taking into account the above, it is extremely important that companies review their salary tables to confirm that the current salaries of their employees are not below the current minimum wage, so in the same way, an update must be made to the IMSS SUA system. If this is the case, the adjustments should have been made as of January 1, otherwise this update will result in consequences of various kinds, among which the following stand out:

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• LABOR INSPECTION

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The purpose of inspections is to monitor compliance with labor standards, especially those that establish the rights and obligations of workers and employers. Therefore, if workers are alerted to non-compliance with the minimum wage update, this is a sufficient reason to carry out an inspection at the workplace, causing the Labor Inspector to report this irregularity to the Public Prosecutor's Office. If you do not allow the inspection to take place in the workplace, you will be notified as instructions so that the employer can submit the required information, and if you do not do so, you will be entitled to a fine of 250 to 5,000 times the Measurement and Update Unit.

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• PENALTIES AND FINES

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The Federal Labor Law contemplates, in its articles 992 and 1004, the way in which violations of labor regulations committed by employers will be sanctioned, also stating that in the event of non-compliance with their obligations, and in the specific case that the employer delivers amounts lower than the salary set as a general minimum or has provided proof of payment that covers sums of money greater than those actually delivered, he will be punished with the following penalties:

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1. Imprisonment of six months to three years and a fine equivalent to 800 times the Measurement and Update Unit, as established by article 992, when the amount of the omission does not exceed the amount of one month's general minimum wage in the corresponding geographical area of application.

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2. With imprisonment of six months to three years and a fine equivalent to 1600 times the Measurement and Update Unit, as established by article 992, when the amount of the omission is greater than thirty times the Measurement and Update Unit, but does not exceed three months of the general minimum wage of the corresponding geographical area of application.

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3. With imprisonment of six months to four years and a fine equivalent to up to 3200 times the Measurement and Update Unit, as established by article 992, if the omission exceeds three months of the general minimum wage of the corresponding geographical area of application.

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• CRIME OF LABOR EXPLOITATION

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As of June 7, 2024, the reform came into force, adding several provisions to the General Law for the Prevention, Punishment and Eradication of Crimes in the Area of Trafficking in Persons and for the Protection and Assistance of Victims of These Crimes; which, in its article 21, indicates that:

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“Anyone who exploits one or more people at work will be punished by 3 to 10 years in prison and a fine of 5 thousand to 50 thousand days.

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Labor exploitation exists when a person obtains, directly or indirectly, unjustifiable economic or other benefits, illegally, through the work of others, subjecting the person to practices that violate their dignity, such as:

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III. Salary below what is legally established”.

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Therefore, and to avoid any contingency, we strongly recommend that all employers check that salaries have been adjusted according to the update.

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Hoping that this information will be useful, we are at your disposal for any questions or clarifications in this regard.

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