MEXICO CITY Mexican telecom Telmex, a subsidiary of America Movil, has reached a deal with a workers' union that proposes a 5.6% pay rise, the country's labor ministry said on Monday, after extended negotiations.

The pay hike would apply to workers and retirees earning less than 1,185.06 Mexican pesos ($67.90) a day, the ministry said in a statement, while those earning above this would receive a fixed daily increase of 66.36 pesos.

Some 30,000 current and retired workers will now vote on the deal, it added.

The firm, controlled by tycoon Carlos Slim's family, has also agreed to move forward with the hiring of 1,942 workers it had agreed to in January and to "begin an analysis" on covering 200 new vacancies, the ministry said.

The company and union also agreed on other commitments such as increasing market share, sales, customer retention, investments, benefits for workers' children, share-exchange and voluntary permanence programs among others, it added.

The labor ministry had been mediating between the company and the telephone workers' union.

($1 = 17.4537 Mexican pesos)

(Reporting by Carolina Pulice; Editing by Sarah Morland)