Mexico – 2025 Minimum Wage Increase Announced
On December 4, 2024, the National Minimum Wage Commission (“CONASAMI”) announced an increase in Mexico’s minimum wage, effective January 1, 2025. The general minimum wage will rise to 278.80 Mexican pesos (MXN) per day, and to MXN 419.88 per day in the Free Economic Zone of the Northern Border. This is equivalent to USD 13.79 and USD 20.78 respectively.
According to CONASAMI's press release, the minimum wage in force in 2024 will be increased by MXN 12.85 for the general minimum wage and by MXN 19.36 for the minimum wage to be paid in the Free Economic Zone of the Northern Border through the so-called Independent Recovery Amount (“MIR”, for its acronym in Spanish).
For the year 2024, the general minimum wage per day was MXN 248.93 and the minimum wage in the North Border Free Zone (ZLFN) was MXN 374.89 per day. This is equivalent to USD 12.32 and USD 18.56.
Thailand - Proposed Reforms to Social Security Wage Base and Contribution System
On December 1, 2024, Thailand’s Social Security Office (SSO) under the Ministry of Labor initiated a public hearing on a draft Ministerial Regulation intended to replace the longstanding Ministerial Regulation No. 7, which has been in effect since 1995. The proposed regulation aims to update the minimum and maximum wage bases used to calculate contributions to the Social Security Fund (SSF). These changes are designed to reflect Thailand’s current economic conditions and provide better benefits for insured individuals.
Under the existing regulation, the wage base for insured individuals under Section 33 is set at a minimum of 1,650 THB per month and a maximum of 15,000 THB per month. This is equivalent to USD 47.84 and USD 434.94.
Proposed Adjustments to the Thai Wage Base
To better align with economic realities and enhance benefits, the SSO has proposed a phased increase in the wage base as follows:
From January 1, 2026, to December 31, 2028:
Minimum: 1,650 THB/month
Maximum: 17,500 THB/month
From January 1, 2029, to December 31, 2031:
Minimum: 1,650 THB/month
Maximum: 20,000 THB/month
From January 1, 2032, onwards:
Minimum: 1,650 THB/month
Maximum: 23,000 THB/month
These adjustments will result in higher contributions from both employers and employees, but they will also lead to increased benefits for insured individuals in areas such as sickness, maternity, disability, death, unemployment, and pensions.
China – Updated Public Holiday Measures for 2025
On November 10, 2024, China’s State Council amended the Measures for National Public Holidays and Memorial Days which will take effect on January 1, 2025. The amendments increase the number of annual public holidays in China from 11 to 13 days.
Under the updated Measures:
Chinese Lunar New Year’s Eve will now be a public holiday.
An additional public holiday will be added to International Labor Day on May 2.
Public Holiday Arrangements in China
To provide longer, uninterrupted holidays for travel and family visits, the Chinese government traditionally adjusts working and rest days before and after public holidays. For example, a three-day National Day holiday is typically extended to seven days through such adjustments.
Starting in 2025, the government will continue this practice, but with two key changes:
Consecutive Working Days Limit: Adjusted consecutive working days around public holidays will generally not exceed six days.
No Midweek Adjustments: If a one-day public holiday falls on a Wednesday, no adjustment to working or rest days will be made.
On November 12, 2024, the government announced the adjusted work and rest days for public holidays in 2025, allowing companies to plan accordingly. While these adjustments are not legally mandatory, most government offices and businesses follow them, making it practical for companies to align with the schedule to avoid disruptions.
Impact on Employee Working Hours
The increase in public holidays reduces the total annual working days from 250 to 248, leading to slight changes in standard working hours. Key impacts include:
Standard Working Hours:
Monthly working days decrease from 20.83 to 20.67, reducing standard working hours for employees under a comprehensive working time system.
For example, quarterly working hours will reduce from 500 to 496, and annual working hours from 2,000 to 1,984.
Overtime Payments:
Overtime for hours exceeding standard working hours under comprehensive systems will still be paid at 150% of the employee’s daily salary.
Companies must pay 300% of the daily salary for work on the new public holidays (Lunar New Year’s Eve and May 2) unless the employee is subject to a flexible working time system in certain regions (e.g., Shanghai, Shenzhen, Xiamen, and Hunan Province).
Payroll Calculations:
The increase in public holidays does not affect payroll calculations, as companies must pay full salaries for public holidays. The monthly payroll base remains at 21.75 days for calculating sick leave, unused annual leave compensation, and other payments.
How Atlas HXM Supports Employers
Atlas HXM empowers employers to navigate the complexities of global HR and compliance with confidence. Whether it’s adapting to minimum wage changes in Mexico, staying compliant with Thailand’s evolving social security regulations, or managing holiday schedules in China, our solutions are designed to streamline the process and reduce risks. With Atlas, businesses can seamlessly onboard, manage, and pay employees in over 165 countries while ensuring full compliance with local employment laws. Start expanding efficiently and confidently with Atlas HXM today.