Workers in Mexico are expected to see a 12 percent increase in minumum wage next year, following an announcement this week. A three-party commission comprising representatives from the government, labor unions and businesses announced Wednesday that the minimum wage will increase with the new rate set to take effect on January 1, 2025.

MEXICO CITY -- Mexico announced Wednesday that it will increase its still strikingly low daily minimum wage by 12% next year. But because the Mexican peso has dropped by 18% in value over the last year, the increase actually marks a slight drop in constant dollar terms.

Mexico's government announced on Wednesday that it will raise the minimum wage by 12% starting next year in a bid to help the poorest workers, as the new leftist president pledged the hike will not fan inflation but instead promote a "humanist" economy.