Public pay cap reforms in Mexico and Chile

In late July 2026, Mexico’s federal government acknowledged a legal conflict in its constitutional reform that sought to halve public pensions. The conflict arose because the reform simultaneously tied the pension ceiling to the president’s salary while also imposing a 50 % reduction, which proved incompatible. Legal counsel ordered the pension limit to follow the full presidential salary, effectively restoring the higher ceiling and nullifying the intended cut.

A week later, Mexico’s governor confirmed that no public pension may exceed the president’s salary, cementing the “golden pensions” cap and reporting savings of about 5 billion pesos. At the same time, Chile’s legislature advanced a separate “Super Sueldos” bill aimed at capping the highest salaries of public officials without reducing existing earnings, indicating a regional trend toward limiting public‑sector compensation.

Together, the snapshots show Mexico moving from a contested pension‑cut proposal to an enforced cap tied to the president’s salary, while Chile initiates its own salary‑cap legislation.