Mexico is planning on raising the national minimum wage from $88.36 pesos to — well, we don’t know the exact number yet. The only thing we know for sure is that the new minimum wage will go into effect on January 1st, 2019.
The commission tasked with setting that new wage, la Comisión Nacional de Salarios Mínimos (Conasami), is currently meeting and they will approve the final number before the end of December.
If you’re an American or Canadian who’s thinking of retiring in Mexico, you might be looking at the title of this article and asking yourself how an increase in Mexico’s minimum wage could affect you. Chances are you don’t have any plans of seeking gainful employment south of the border anyway.
Well, if you plan to apply for temporary or permanent residency in Mexico, the new minimum wage should be very important to you because that figure is used in the formulas that determine if you have enough income/savings to obtain Mexican residency.
Here’s an example of what I’m talking about:
One of the ways you can qualify for a temporary resident card is to show that you have a monthly income from a foreign source (pension or income) that is at least 300 times the minimum wage. At the current minimum wage, that would be $88.36 X 300 = $26,508 pesos, or about $1,325 USD / $1,767 CAD.
By the way, that number doesn’t include the financial requirements for spouses and dependents.
When the minimum wage goes up on January 1st, that new amount will be plugged into equations like the one above.
What’s the New Rate Expected to Be?
Most experts predict that the new rate will be around $102 pesos; however, last September, the Mexican Senate asked Conasami to set the new minimum wage at $176.72.
For example purposes, let’s say that the minimum wage only increases to $102 pesos. If we plugged that new number into the formula in the last section, it would become: $102 X 300= $30,600 pesos, or about $1,530 USD / $2,040 CAD per month. That’s an increase of about $205 USD and $273 CAD, respectively.
If you’d like to see all of the current financial requirements to obtain either temporary or permanent residency in Mexico, check out Financial Requirements for Residency.
Let’s Wrap This Up
If you’re thinking about applying for Mexican residency and you’re right on the line when it comes to the financial requirements, you might want to speed up your time table and head to the Mexican Consulate to apply before January 1st. Keep in mind that there are a lot of holidays in this month, so your window of opportunity is pretty small.
If you don’t meet the financial requirements for some reason, don’t panic — your dream of spending your golden years in a Mexican paradise is not dead. You can still come here as a tourist and spend up to 180 days at a time enjoying this wonderful country.