Mexico raises minimum wage

December 3, 1996
Web posted at: 9:30 p.m. EST (0230 GMT)

MEXICO CITY (CNN) -- The Mexican government raised the minimum wage 17 percent Tuesday in an effort to turn back the effects of inflation, which has for the past two decades gone up faster than Mexican wages.

Tuesday's increase raised it to a maximum 26.45 pesos a day, or about $3.36. However, for most Mexicans the move was marred by sharp increases in transportation and energy costs. Both sectors are subsidized by the government. Fuel prices went up 8 percent from December 1 prices, and urban transportation prices rose from 20 percent to 50 percent.

Only 3.5 million Mexican workers earn the minimum wage, but wages for most of the other 35 million workers are loosely tied to it.

Reuters contributed to this report.

 

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• Mexico on the Net
• @migo! - Mexico Online

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