Mexico agrees pay rise for public sector -- paper

MEXICO CITY, May 1 (Reuters) - Mexico will grant some 300,000 public sector workers an average 4.6 percent increase in wages and bonuses, El Universsal reported on Tuesday, citing a statement by the finance ministry and the state workers union.

Administrative and general workers will be granted the pay rise, which will be retroactive and applies from Jan. 1 this year, El Universal said on its Web site www.eluniversal.com.

The pay rise would take the minimum wage for those workers to 4,714 pesos ($431), the paper said.

The finance ministry was not immediately available for comment due to the Labor Day holiday in Mexico.

Mexico has some 2.4 million public sector workers. Despite concerns about inflation, President Felipe Calderon in February announced a wage increase for the country's armed forces, although he cut his own salary by 10 percent.

Mexico is aiming for inflation of 4 percent in 2007, but economists worry an increases in food prices could spread to other areas of the economy.

The central bank raised its overnight interest rate by 25 basis points on Friday in what it called a preemptive move against inflation.