Living Wage Series - Mexico - December 2018 - In Mexican Peso, per Month

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 in more than 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 3560-4720 3310-4390 830-1100
Housing 2100-4000 2100-4000 955-2050
Transport 200-300 200-300 100-150
Health 600-1000 600-1000 150-250
Education 800-1000 800-1000 0
Other costs 365-550 350-535 100-175
Total Expenditure 7625-11570 7360-11225 2135-3725
Net Living Wage 4485-6806 4089-6236 2135-3725
Gross Living Wage 5210-7900 4750-7240 2480-4320

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) 5210-7900
Standard family (two parents + 2 children, 1.8 working) 4750-7240
Two parents and two children, 2 working 4270-6510
Two parents and two children, 1.5 working 5690-8680
Two parents and two children, 1 working 8540-13000
Two parents and three children, 1.7 working 5620-8450
Two parents and four children, 1.7 working 6220-9240
Single-adult without children, 1 working 2480-4320

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.

  2015 2016 2017 2018
Minimum wage 1750 1899 2433.2 2686
Living Wage - Single Adult 2920-4200 2980-4280 2460-4130 2480-4320
Living Wage - Typical Family 5790-7820 5850-7900 5150-7700 5210-7900
Real wage of low-skilled worker 3330-4840 3210-4830 3710-5340 3960-5510
Real wage of medium-skilled worker 5400-8390 4930-7910 5750-8890 6440-9700
Real wage of high-skilled worker 9400-15100 8400-13900 9960-15900 11200-17400

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.

Mexico Graph

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 item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 71 187 20-35
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 15-19
Maize and products 222 686 14-20
Milk - Excluding Butter 213 113 14-15
Vegetables, Other 65 19 16-20
Potatoes and products 28 18 12-16
Butter, Ghee 6 40 30-40
Groundnuts (Shelled Eq) 5 21 40-60
Pulses, Other and products 4 12 15-20
Cassava and products 0 0 12-20
Egg (price per 10 eggs) 35 46 20-24
Sunflowerseed Oil 0 1 23-28
Fish products 20 14 80-100
Beer (0.5 liter/pint) 99 35 30-40
Sweeteners, Other 20 61 15-20
Beans 20 70 15-20
Sweet potatoes 1 1 14-18
Bananas 23 16 10-15
Soyabeans 0 0 24-40
Apples and products 17 8 20-26
Tomatoes and products 28 5 13-16
Onions 14 4 10-14
Oranges, Mandarines 64 17 10-15
Plantains 0 0 10-15
Peas 0 1 13-17
Roots, Other 2 2 10-15
Seeds and kernels 0 3 30-50
Wine (bottle) 0 0 133-160
Pineapples and products 10 2 15-20
Cream 0 0 30-50
Olives (including preserved) 1 1 60-100
Honey 0 1 40-60
Citrus, Other 0 0 10-15
Lemons, Limes and products 20 5 11-15
Tea (including mate) 0 0 35-50
Grapefruit and products 5 1 10-15
Coffee and products 1 1 58-80

 

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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