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Mexico Agrees 9% Pay Rise for Federal Administrative and Services Staff

The deal signals a government move to protect low‑paid federal workers while strengthening public pension and health‑care funds

Overview

  • In mid‑June the Secretaría de Hacienda y Crédito Público and the FSTSE reached an agreement to grant a 9% increase to base salary and prestaciones that is retroactive to January 1, 2026 and targets administrative and general services personnel.
  • The FSTSE says the raise will affect about 800,000 federal workers and is structured to give larger gains to lower‑paid employees while ensuring no base salary falls below the general minimum wage.
  • The agreement preserves year‑end economic stimuli, including institutional vales de despensa and proportional adjustments to aguinaldo, so those benefits remain part of total compensation calculations.
  • Negotiations for medical, paramedical and related health‑sector groups remain open and the union and Hacienda said results for those categories will be announced separately in the coming days.
  • Implementation requires technical steps such as payroll annexes, budgetary adjustments and legal assignment of plazas under the Reglamento de Escalafón, and the FSTSE is using the talks to push for PENSIONISSSTE to become a public, non‑profit Afore and for measures to bolster ISSSTE’s financial viability.