Mexico - Living Wages August 2017. Per Month in MXN

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (2.3 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (67% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in MXN)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 3470 4510 3220 4200 805 1050
Housing 2250 3000 2250 3000 1470 2000
Transport 400 700 400 700 200 350
Health 500 1000 500 1000 125 250
Education 600 1500 600 1500 0 0
Other costs 360 535 350 520 130 185
Total Expenditure 7580 11245 7320 10920 2730 3835
Net Living Wage 4459 6615 4067 6067 2730 3835
Gross Living Wage 5172 7673 4717 7037 3167 4449

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in MXN)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2.3 children, 1.7 working) 5170 7680
Standard family (two parents + 2 children, 1.8 working) 4720 7040
Two parents and two children, 2 working 4250 6340
Two parents and two children, 1.5 working 5660 8450
Two parents and two children, 1 working 8490 12700
Two parents and three children, 1.7 working 5570 8210
Two parents and four children, 1.7 working 6150 8960
Single-adult without children, 1 working 3170 4450

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in MXN)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

7-12/20151-6/20167-12/20161-6/2017
  from to from to from to from to
Minimum wage 1750 . 1899 . 1899 . 2433 .
Living Wage - Typical Family 5600 8520 5450 8210 5240 7960 5170 7680
Living Wage - Single Adult 3390 5110 3340 4690 3240 4660 3170 4450
Real wage of low-skilled worker 3090 5310 3530 5110 3630 5360 3620 5310
Real wage of medium-skilled worker 4050 7080 5530 8350 5730 8880 6030 9340
Real wage of high-skilled worker 6880 12000 10200 15500 10200 16100 10800 17000

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.

Living Wage model diet and food prices in MXN

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 71 187 20 33
Rice 11 41 12 15
Meat (beef, pork, poultry) 128 223 60 80
Oils (soyabean, olive, palm) 21 189 20 25
Sugar (Raw Equivalent) 73 257 14 20
Maize and products 222 686 13 20
Milk - Excluding Butter 213 113 13 15
Vegetables, Other 65 19 16 20
Potatoes and products 28 18 12 15
Butter, Ghee 6 40 26 40
Groundnuts (Shelled Eq) 5 21 28 45
Pulses, Other and products 4 12 15 20
Cassava and products 0 0 12 20
Egg (price per 10 eggs) 35 46 400 23
Sunflowerseed Oil 0 1 22 28
Fish products 20 14 80 100
Beer 99 35 30 45.5
Sweeteners, Other 20 61 14.5 20
Beans 20 70 15 20
Sweet potatoes 1 1 14 16
Bananas 23 16 10 15
Soyabeans 0 0 20 30
Apples and products 17 8 20 26
Tomatoes and products 28 5 13 16
Onions 14 4 10 15
Oranges, Mandarines 64 17 9 10
Plantains 0 0 10 15
Peas 0 1 12 15
Roots, Other 2 2 10 15
Seeds and kernels 0 3 25 45
Wine 0 0 133 160
Pineapples and products 10 2 10 15
Cream 0 0 30 44
Olives (including preserved) 1 1 50 76
Honey 0 1 40 60
Citrus, Other 0 0 10 15
Lemons, Limes and products 20 5 10 15
Tea (including mate) 0 0 30 50
Grapefruit and products 5 1 10 15
Coffee and products 1 1 56 80

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

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