Living Wage Series - Mexico - September 2019 - 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 70 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 MXN)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 3480-4710 3310-4480 825-1120
Housing expenses 3340-4670 3340-4670 1800-2750
Transport expenses 500-600 500-600 250-300
Healthcare expenses 600-1000 600-1000 150-250
Education expenses 800-1000 800-1000 0
Other expenses 435-600 425-585 150-220
Total Expenditure 9155-12580 8975-12335 3175-4640
Net Living Wage 5722-7863 4986-6853 3175-4640
Gross Living Wage 6640-9120 5790-7950 3690-5380

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

  from-to
Typical family (two parents + 2.2 children, 1.6 working) 6640-9120
Standard family (two parents + 2 children, 1.8 working) 5790-7950
Two parents and two children, 2 working 5210-7160
Two parents and two children, 1.5 working 6940-9540
Two parents and two children, 1 working 10400-14300
Two parents and three children, 1.6 working 7140-9810
Two parents and four children, 1.6 working 7770-10700
Single-adult without children, 1 working 3690-5380

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in MXN)

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.

  2016 2017 2018 2019
Minimum wage 1899 2433.2 2686 3121
Living Wage - Single Adult 3250-4780 3020-4450 3370-5140 3690-5380
Living Wage - Typical Family 6100-8450 5950-8250 6270-8870 6640-9120
Real wage of low-skilled worker 3290-4820 3590-5020 3950-5460 4210-5580
Real wage of medium-skilled worker 4970-8010 5470-8460 6090-9360 6600-9810
Real wage of high-skilled worker 8310-13900 9420-15100 10500-16700 11300-17300

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.

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Food basket 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 item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 71 187 20-32
Rice 11 41 12-15
Meat (beef, pork, poultry) 142 247 75-90
Oils (soyabean, olive, palm) 21 189 21-25
Sugar (Raw Equivalent) 81 284 -
Maize and products 222 686 12-20
Milk - Excluding Butter 213 113 14-15
Vegetables, Other 65 19 15-20
Potatoes and products 28 18 14-18
Butter, Ghee 6 40 30-40
Groundnuts (Shelled Eq) 6 23 -
Pulses, Other and products 4 12 15-20
Cassava and products 0 0 10-20
Egg (price per 10 eggs) 35 46 20-25
Sunflowerseed Oil 0 1 20-26
Fish products 20 14 80-100
Beer (0.5 liter/pint) 99 35 30-40
Sweeteners, Other 20 61 15-20
Beans 22 77 -
Sweet potatoes 1 1 13-16
Bananas 26 18 12-15
Soyabeans 0 0 25-40
Apples and products 17 8 20-25
Tomatoes and products 28 5 13-16
Onions 14 4 10-15
Oranges, Mandarines 64 17 10-15
Plantains 0 0 10-15
Peas 0 1 15-18
Roots, Other 2 2 10-15
Seeds and kernels 0 3 30-50
Pineapples and products 10 2 16-22
Cream 0 0 50-85
Olives (including preserved) 1 1 60-100
Honey 0 2 -
Citrus, Other 0 0 10-15
Lemons, Limes and products 20 5 12-15
Tea (including mate) 0 0 40-50
Grapefruit and products 5 1 10-15
Coffee and products 2 1 -

 

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.

WageIndicator useful links:

Publication Guzi, M., & Kahanec, M. (2019). Estimating Living Wage Globally. Amsterdam, WageIndicator Foundation
WageIndicator Wages in Context Map with the latest updates
All You Always wanted to Know about Living Wages
Donations

 


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