CONCANACO SERVYTUR call to reduce formal employment burdens to support 2027 wages, Digi Mart USA News (Mexico): CONCANACO SERVYTUR México has asked that the 2027 minimum wage discussion incorporate the full cost of generating formal employment and be accompanied by measures to reduce the tax and administrative burdens on family businesses. The confederation says recovering purchasing power and reducing the working day require conditions that preserve jobs, expand social security and keep establishments open.
The challenge is large. In the second quarter of 2026, about 33.1 million people, or 55.1% of the employed population, worked in the informal sector, and of the 599,334 new jobs created during the year, 494,607 were informal.
“We want people to earn more, have time for their families and have social security. To sustain that well-being we need shared responsibility.
When wages rise, contributions on that pay can also rise; that is why we must discuss how to reduce the burdens that make it difficult to hire and remain in formality,” said Octavio de la Torre de Stéffano, president of CONCANACO SERVYTUR México.
Beyond wages, a formal job includes labor benefits such as the year-end bonus (aguinaldo), paid vacation and vacation premium; hiring a replacement can generate additional expense. Social security includes employer contributions for occupational risks, illness and maternity, disability and life insurance, daycare and social benefits, and retirement, old-age and unemployment provisions.
Housing contributions include an employer payment of 5% of the applicable base to Infonavit. Local taxes include the payroll tax, set by each state’s legislation.
Operational payments include overtime, Sunday premium, rest and holiday days, and profit sharing where applicable.
Agreed benefits include vouchers, savings funds, insurance and social provision. Compliance and operations include payroll administration, time records, training, protective equipment and occupational safety and health obligations.
Labor contingencies include replacements, absences, seniority premiums and severance, where legally required.
Part of this cost is paid directly as benefits, and another part finances health, pensions, housing and social protection. The confederation argues that recognizing these benefits allows a discussion of how to extend them to more families and finance their sustainability.
As an illustration, a hypothetical increase of 10% to 12% on the minimum wage of 315.04 pesos per day would equal between 958 and 1,150 additional pesos per month in direct wages, plus adjustments to benefits and contributions. These are illustrative scenarios, not approved increases.
In one Confederation exercise, a salary of 20,000 pesos per month implies an employer cost of about 26,000 pesos, roughly 30% more, which can approach 40% with other obligations.
Pressure is also building from the working week: from 48 to 46 hours in 2027 and to 40 in 2030, without reducing wages. For a position subject to both adjustments, the hourly wage cost would rise between 14.8% and 16.9% in 2027, before considering contributions and productivity.
The Confederation proposes an agenda with the Secretariat of Labor and Social Welfare, the Secretariat of Finance and Public Credit and the IMSS, together with workers, employers and local governments, including: temporary and verifiable support for new hires; targeted mechanisms to facilitate social security with defined financing and no reduction in benefits; a review of rights and administrative costs; training, digitalization and financing; and compliance rules proportionate to the capacities of small businesses.
The proposal also calls for agreements with responsible parties, deadlines and verifiable results in reducing burdens, productivity and formal employment, along with an evaluation of the transition’s effects on income, rest, service coverage and business viability.
“Shared problems demand shared responsibilities. We want better wages, more rest and more people with social security.
To achieve that, we need family businesses to have conditions to grow and sustain those rights every day,” said De la Torre.
CONCANACO SERVYTUR takes part in CONASAMI as part of the employer representation and, by law, represents commerce, services and tourism, which account for most national employment. With 2 million affiliates, its sector base totals 5.2 million companies and family businesses.
“Our chambers and affiliates, including transportation services, are concerned about accumulated burdens. We will defend their needs with our own voice and maintain direct dialogue with authorities,” said De la Torre.
The Confederation expressed confidence that President Claudia Sheinbaum Pardo will take up the matter and follow the joint agenda.
