What is the Northern Border Free Zone program?
The Northern Border Free Zone is part of the National Development Plan 2019-2024 and seeks to promote economic and social development in the border municipalities. This program includes measures such as reducing VAT to 8%, ISR to 20%, and increasing the regional minimum wage to double.
Why the minimum wage is higher in the north
According to the Plan, the higher minimum wage on the northern border responds to specific economic and social factors. Economic interaction with the United States generates wage inequalities that this adjustment seeks to reduce.
Additionally, northern entities have historically recorded more stable economic growth, which allows these measures to be implemented. This seeks to encourage workers to remain in the region and strengthen local economies.
How much was the minimum wage for 2025?
According to the announcement by the Government of Mexico, the general minimum wage in the country will be 278.80 pesos per day as of January 1, 2025. In the Northern Border Free Zone, this amount will be 419.88 pesos per day, reflecting a 12% increase in both regions.
