These Folks Need a Raise

The cost of living might be low in Mexico, but so is the pay! This chart shows the median gross monthly salary - at an 18.5:1 pesos to dollar exchange rate - for someone with five years of experience. Remember, we’re in a country where the national daily minimum wage is $4 USD (although in Cabo, the rate is a tiny bit higher). And that’s after a 10% wage increase last year.

Politicians have proposed legislation that would gradually raise the minimum wage to the same level as the United States. If passed, the National Wage Commission would begin a seven-year program that would increase the minimum wage by 35% a year. That’s nice in theory, but, cynics that we are, we don’t really see it happening. It would be very inflationary if it did.

Mexicans don't suffer so much from unemployment as they do underemployment. That is, terribly low wages. You see three people doing the job one person would do in the States, and of course each of those three make one third of what they could make if they did all the work. That is underemployment.