Mexico - Living Wages October 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 uses prices from the Cost of Living Survey to calculate Living Wage for 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Mexican Peso)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 3550 4690 3300 4360 825 1090
Housing 2500 3670 2500 3670 1320 1990
Transport 480 670 480 670 240 335
Health 500 1000 500 1000 125 250
Education 600 1500 600 1500 0 0
Other costs 380 575 370 560 125 185
Total Expenditure 8010 12105 7750 11760 2635 3850
Net Living Wage 4712 7121 4306 6533 2635 3850
Gross Living Wage 5470 8260 5000 7580 3060 4470

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Mexican Peso)

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 most common family household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 2.3 children, 1.7 working) 5470 8260
Standard family (two parents + 2 children, 1.8 working) 5000 7580
Two parents and two children, 2 working 4500 6820
Two parents and two children, 1.5 working 6000 9100
Two parents and two children, 1 working 8990 13600
Two parents and three children, 1.7 working 5880 8810
Two parents and four children, 1.7 working 6470 9590
Single-adult without children, 1 working 3060 4470

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Mexican Peso)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 1658 1658 1750 1750 1899 1899 2433.2 2433.2
Living Wage - Single Adult 3270 4830 3150 4730 2960 4340 3060 4470
Living Wage - Typical Family 5510 8410 5330 8260 5360 8160 5470 8260
Real wage of low-skilled worker 3400 5000 3150 4810 3550 5100 3850 5560
Real wage of medium-skilled worker 5480 8590 4710 7680 5530 8530 5950 9270
Real wage of high-skilled worker 9810 15700 7910 13200 9830 15500 10500 16700

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.


Food basket and food prices in Mexican Peso

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 15 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 20 23.3
Sunflowerseed Oil 0 1 22.9 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 14.5
Cream 0 0 30 45
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

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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