MEXICO CITY, (Reuters) – Mexico’s government agreed to raise the minimum wage by 22% next year, Mexican industry organizations said Wednesday. This is yet another move by President Andres Manuel Lopez Obrador in his fight against the nation’s huge wealth gap.

Lopez Obrador steadily raised wages since he took office three years back. He also made a promise to the poor by increasing wages 20% by 2020 and 15% by 2021.

According to the CCE lobby, the increase in salaries will be supported by 260.34 pesos ($12.15 per day) in the north border zone. This area is home to many foreign-owned factories and scores more. In the rest of the country, the average salary rises to 172.87 pesos (8.07) per day.

CCE issued a statement saying, “We are pleased with this agreement…and reiterate our resolve to protect our colleagues and their families.” Inflation was also mentioned by the CCE as a problem that should be dealt with.

The CCE stated that Mexico’s economy was in recovery and has high levels of inflation. This is something we must contain.

The Mexican Government’s National Minimum Wage Commission CONASAMI has yet not publicly declared the increase in minimum wages.

($1 = 21.4206 Mexican Pesos