Living Wage Series - Mexico - January 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 3550-4690 3300-4370 825-1090
Housing 2950-4400 2950-4400 1330-2110
Transport 500-700 500-700 250-350
Health 500-1000 500-1000 125-250
Education 600-1500 600-1500 0
Other costs 405-615 390-600 125-190
Total Expenditure 8505-12905 8240-12570 2655-3990
Net Living Wage 5003-7591 4578-6983 2655-3990
Gross Living Wage 5810-8810 5310-8100 3080-4630

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.

Typical family (two parents + 2.3 children, 1.7 working) 5810-8810
Standard family (two parents + 2 children, 1.8 working) 5310-8100
Two parents and two children, 2 working 4780-7290
Two parents and two children, 1.5 working 6370-9720
Two parents and two children, 1 working 9560-14600
Two parents and three children, 1.7 working 6220-9360
Two parents and four children, 1.7 working 6810-10100
Single-adult without children, 1 working 3080-4630

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 3200-4760 3200-4920 3070-4420 3080-4630
Living Wage - Typical Family 5750-8710 5710-8840 5790-8600 5810-8810
Real wage of low-skilled worker 3290-4870 3170-4910 3630-5280 3760-5400
Real wage of medium-skilled worker 5400-8400 4840-7870 5630-8680 6250-9530
Real wage of high-skilled worker 9480-15100 8230-13700 9900-15600 11000-17200

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
Wheat, barley and cereals products 71 187 20-34
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 27-40
Groundnuts (Shelled Eq) 5 21 35-50
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 99 35 30-40
Sweeteners, Other 20 61 15-20
Beans 20 70 15-20
Sweet potatoes 1 1 15-18
Bananas 23 16 10-15
Soyabeans 0 0 20-30
Apples and products 17 8 20-25
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 12-15
Roots, Other 2 2 10-15
Seeds and kernels 0 3 30-50
Wine 0 0 133-160
Pineapples and products 10 2 10-15
Cream 0 0 30-44
Olives (including preserved) 1 1 55-100
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.