Mexican state oil company Petroleos Mexicanos, known as Pemex, and its union agreed to a 7.82% hike in combined benefits and pay, according to a government statement published on Thursday.
Under the agreement, Pemex workers will receive 4.16% higher salaries and 2.28% more in benefits over the August 2023- July 2025 period. A further 1.38% salary increase is set to come into effect from January 2024.
Unionized workers approved a revised collective contract with the company, with just over 92% of the votes in favor and participation of 78.51%, the Oil Workers Union of the Mexican Republic said in another statement.
This comes after an Oct. 17 consultation with some of the union's nearly 92,000 workers, the union statement added.
According to Mexican law, reviews of collective contracts, which include salary and benefits, are carried out every two years, while salary increases are carried out every year.
Both parties had last year sealed a deal for a 4% pay raise and a 2.25% increase in benefits for over 2022 to 2023.