In the last two years, the minimum wage in Mexico went up by about 50%. This is equal to a monthly salary of $489 USD in the Northern Border Zone, the border states. These mandatory raises also resulted in an increased tax burden on employers, as payroll taxes amount to approximately 50% of salaries paid. The result is a total increased cost to employers of about 75% for employee salaries. This is especially tough for micro and small businesses; 85 percent of businesses in Mexico are this size. Some shops are not implementing the salary bumps. For those that do, the raised costs are forcing a need to fund budgets elsewhere. We are glad our staff is receiving salary hikes. However, these wage increases have affected our debt growth.
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