Mexico | Increase in wages and competition policies will bring greater growth

Summary

Wages in Mexico are low compared to other countries with a similar income level. Most worryingly, wages have fallen, in real terms, over the last 25 years in all income deciles.

Key points

• Key points:
• After the economic crisis of 1995, the real average salary for contributions to the IMSS fell more than 25% and still has not reached the levels it had 25 years ago
• That crisis affected the salary trajectory of entire generations that have not been able to recover the purchasing power they had then
• BBVA Mexico implemented in 2017 a policy to increase the salaries of employees who earned the least by raising their remuneration above the market

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