The minimum wage in the United States in the state of New Mexico in 2023
The rate of minimum wage in New Mexico is an issue that impacts many residents. In the United States, the federal minimum wage is currently set at $7.25 an hour, with some states, including New Mexico, choosing to set their minimum wage higher. As of 2019, the minimum wage in New Mexico is set at $7.50 per hour for non-tipped employees and $2.13 per hour for tipped employees, which is higher than the federal rate.
The fact that New Mexico has chosen to set its minimum wage higher than the federal rate is beneficial for those workers who depend on the money for living expenses. It helps to protect those employees who may not have the ability to negotiate a higher wage because of their circumstances and ensures they are provided an adequate amount of money for basic needs. The amount that employers are required to pay their employees is also beneficial for businesses as well; higher minimum wages can lead to increased consumer spending, employee retention and productivity, and overall economic growth.
However, while the increased minimum wage rate may be beneficial in some areas, it is also important to understand that raising the minimum wage could create less incentive for businesses to hire new employees because of the additional cost. This could put the state’s labor market at risk. Many businesses depend on the lower hourly rate to make ends meet, and even with the state-mandated rate of minimum wage, it may not be enough to ensure businesses will hire more workers or remain operational. It is often a difficult decision for businesses to make regarding the rate of wages they provide to their employees, as it directly impacts their expenses and profits.
Though there are both pros and cons to raising the minimum wage rate, one thing remains certain; New Mexico has set a mandate that is higher than the federal rate and will remain that way until further notice. This provides a slightly improved quality of life and wages for those working in the state, and helps ensure that businesses have access to a workforce that is well compensated for the time they spend working.