Employee Expenses Increase

by Little Guy @, Thursday, December 29, 2022, 11:09 (1412 days ago) @ midalake

You are correct there is a country wide increase [my bad]

So it looks like a daily increase to $207.44 Mexican pesos per day.

Which my maid clearly makes way more than this!

Do not see how this will affect gringos much.

I worked for decades dealing with employee compensation involving employees over a wide range of wage/benefits rates from minimum wages to $100/hour. My experience is that an increase in minimum wages works upwards over time. The greater the increase in the minimum wage, the faster the wage pressure moves. A 20% increase in the minimum wage is a massive increase. (I’m not suggesting it is unwarranted, only that it is large.)

Imagine if your job were more difficult than a minimum wage job and you were paid 20% more because of that. Now imagine that one day your lesser-paid coworkers were making just as much as you. I think that you would expect a wage increase too in order to preserve your historical wage relationship.

Then your supervisor who historically earned 15% more than you would expect a similar wage increase. “Why should I have supervisory responsibility and get paid less than the person I supervise?”

Wage pressure is not only internal to a workplace. It is between workplaces.

I bet my employees could tell me how much others are being paid for comparable work (or at least work they think is comparable). I bet yours could too. As they start hearing of others getting “wage pressure increases” resulting from the increase in the minimum wage, we gringos can expect to experience wage pressure. And at a 20% increase, I think we can expect to hear it in months or weeks, not in a year.


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