Remuneration in Mexico could increase in 2024
Remuneration in Mexico could increase in 2024, according to a survey conducted with companies in various regions.
In this regard, remuneration in Mexico is expected to see increases ranging from 5% to 9%, although in some cases, they could be higher.
This will depend on factors such as job position, industry, and the region where the company is located.
The projected salary increases are linked to the companies’ estimations of inflation for the upcoming year, which they expect to be between 4.2% and 4.7%.
After more than a year of high consumer price growth, remuneration has become one of the most valued aspects for workers.
The Mercer Total Remuneration Survey suggests a scenario of remuneration increases in Mexico between 6.6% and 7.5% for 2024.
In this context, operational positions would be the most benefited with these raises, while executive and managerial roles would receive lower percentages.
“It’s important to note that, as we’ve seen on previous occasions, there is a difference between the data reported to us and the data that is actually observed,” notes Gerardo García Rojas, leader of Mercer Mexico’s Career business.
It’s worth highlighting that this year, the salary increases granted exceeded the projections made in 2022. For instance, for operational positions, the projected increase was 7.5%, but an average of 13.5% was observed.
Also read: Inflation Rate in the United States for September 2023.
Remuneration in Mexico in 2024
According to the PageGroup Salary Survey, 78% of large companies do have plans to increase salaries in 2024. Within this group, half expect increases between 5% and 6%, while a small proportion of companies (7%) are considering raises of more than 9%.
According to the Mercer survey, the factors that will have the most influence on the salary reviews that companies will conduct for the coming year include:
- Greater retention challenges
- Talent with high-demand skills
- High-performance employees
- Workforce in countries with high inflation
- Digital competencies
- Financially vulnerable employees
Remuneration in Mexico may also depend on union membership.
The AON Compensation Survey estimates average salary increases of 8.8% for unionized personnel in the coming year, while for other employees, adjustments are expected to range from 6.6% to 7.0%.
According to the consultancy firm’s survey, 53% of companies have already defined the salary increase for 2024. The report highlights that nearly four out of every ten companies plan to implement these adjustments in April.
As per the AON report, for the following year, non-unionized employees are expected to receive smaller increases compared to those observed this year (7.6% on average).
In contrast, employees with union representation are expected to maintain a similar rate of adjustments to those reported in 2023 (8.4%).
In 2023, salary reviews have experienced significant increases, raising contractual salaries to levels not seen in two decades, according to figures from the Ministry of Labor and Social Welfare (STPS).
In 2023, unionized employees received an average nominal increase of 7.7%, resulting in a real annual growth of 1.8%.
In 2023, contractual salaries saw increases greater than 8% on eight occasions, and in January, the highest nominal increase in 22 years was reported at 10.2%.
