Monday, January 6, 2014

Minimum Wage in Jalisco and the cost of living

A few days ago I received an e mail from a man asking if it is possible to live here on 300 dollars a month. That was the monthly income for himself and his wife. I wrote back, No.  I was sure that was not possible. Today I read in the Guadalajara Reporter about the minimum wage for Mexicans here. I thought it might be of interest to my readers. I was shocked at how low it is here.

There was an increase of 3.9 percent this January of the minimum wage. It is now, 67.29 pesos a day and in other areas outside of here it is only 63.77 pesos a day. That is about five dollars a day!  The article also said that 60% of Mexican families here make less than 5,800 pesos a month. That is equivalent to 3 minimum wages. Or around 443 dollars a month. The article said that the average family of four needs an income of at least 15,000 pesos a month to meet the basic expenses here. That is eight times the minimum wage.  Figure it out for yourself and you will come to the same conclusion that I came to after reading this article. There are a lot of very poor people living here!

22 comments:

  1. The numbers vary, but about 40% of the people in Mexico live in poverty. Of that number, most have adequate housing and food. But it is a rough life for them. The fact that 60% of Mexicans are now middle or upper class has been a great accomplishment. And Mexico deserves to be proud of the accomplishment. However, the economy needs to expand further to bring along the rest of Mexico's citizens.

    ReplyDelete
    Replies
    1. Hi Steve, Thanks for commenting. Always good to hear from you. p

      Delete
  2. It's interesting to think about how people survive on that small amount - don't pay rent just squat in a rough structure or live with the extended family, don't have electricity or any services, cook on a fire, don't buy any prepared food (except cola), or go to shops - if you can't grow or gather it everything you consume, wear, use is from the market, meat is a treat, walk everywhere or take the cheapest collectivo, do many odd jobs to make a bit of money or make or scavenge things like firewood to sell, maybe get a remittance from male relatives working in the US or the city..then there's always illegal activities.

    Jane

    ReplyDelete
    Replies
    1. Hi Jane, Thanks for commenting. Yes, you get the picture...... Very sad. p

      Delete
  3. With the new immigration law for a foreigner to live here, he must have an income of at least $1,900.00 per month to obtain a residente temporal. The average social security check isn't that much.

    ReplyDelete
    Replies
    1. Yes, So he would have to leave the country every six months. Thanks for that comment. p

      Delete
  4. It kind of makes for a detorrent for foreigners to live there with such harsh laws in place now making it a place for only the more wealthy expat to stay in their country which they are really cutting their noses off to spite their faces! For with Expats moving there it will increase their economy given how low the income is for most Mexicans! You'd think their government would recognize this and not make such unreasonable laws specially when they know how many of their countrymen come to the US illegally!!!! Oh well....it is what it is! pam in OR who would like to move there but most likely won't afford it :(

    ReplyDelete
    Replies
    1. Hi Pam in OR. Good to hear from you. I hope you will be able to live here one day. p

      Delete
  5. I can't imagine anything much more devastating to Mexico's economy than an invasion of severely low-income retirees stressing the resources of an already-stressed system. I don't blame Mexico at all for setting minimum income requirements. They want retirees to improve the economy, not put an increased drain on it. It's true the avg SS check isn't $1900/mo, but nobody should expect Social Security to fully support them in retirement. Americans at least (can't speak to Canadians) have saved woefully little money for retirement for years. They shouldn't expect moving to Mexico to bail them out of that predicament.

    JimS.
    Seattle

    ReplyDelete
    Replies
    1. Hi JimS. Thanks for commenting. Interesting point of view. p

      Delete
  6. Well I agree somewhat with Jim, but really look at all the illegals living off the systems in the US...c'mon now lets look at the fairness in that! I say whats good for the goose should be good for the gander! LOL! So since the can of worms has been opened here, I still feel the high amount of 1900 a month as a stipulation for getting permanent residency is very steep and as for saving for retirement as a US citizen divorcee let me tell you it's not as easy as you say Jim. It's a fact that most divorced women are the most poor Americans in the country!!!! I'm one of those statistics who's had a lot of rough times making it in a career in a poor economy in the US so that's why I was looking into Mexico in the first place. I'm not looking for a free ride, never have but I deserve to retire just like a wealthy person does. I have to live mainly on my social security to ever retire and I've worked since I was 13 yrs old!!! Also how would low income retirees take a lot from the Mexico systems.....? I sure don't have any intention of doing that, but I also know where I can cut corners to afford to live on a much lower income than 1900/month and still take well care of myself while helping the Mexican economy!

    ReplyDelete
    Replies
    1. Thank you for taking the time to write on this subject. It has stirred up some strong reactions. p

      Delete
  7. A US citizen can "buy" mexican residency for $1,900/mo. and a Mexican can "buy" US residency for a $500,000 investment (EB-5 visa). I'll take the $1,900/mo. plan.

    ReplyDelete
    Replies
    1. Thank you for commenting. I did not know that fact about the US residency law. p

      Delete
  8. Hi patricia. I love how welcoming and accepting you are of all comments. Your wonderful!

    ReplyDelete
    Replies
    1. Thank you. I appreciate that. I have to admit that there were a few very nasty comments that I did not post. One said, "You baby boomers should DIE ALREADY!" I deleted that one. p

      Delete
    2. I too am impressed with Patricia's overall comments and replys and her blog itself. For an older gentleman who is considering a move to Ajijic in the near future, it has really helped with answering some questions. She keeps it interesting too. Thanks Patricia.
      Larry Ray

      Delete
  9. Hi Patricia! First let me say how happy I am that you have found such a great place to stay...congrats on that. I love the pottery you found; it seems far superior to the pottery that I see in the photos of the regular market.
    I'm interested to read the comments about the people hoping to live on a reduced income in Mexico. Would they find it easier to live on less away from the towns that are so popular with ex-pats?

    Lynn in Oregon

    ReplyDelete
    Replies
    1. Thanks for writing Lynn, For sure but you would have to be able to speak Spanish or be willing to learn it. There are lots of inexpensive little towns around Mexico. I met a woman who lives in COMALA on very little in the middle of a papaya farm. P

      Delete
    2. You are right. I came here because I read I could live on $800. That is all I have. Cannot make it and I do not know where to go

      Delete
    3. Hi Pearl, I live on that amount here. The key is to be willing to live very simply. I lived without a kitchen for over eight years. I don't have a car. Very few expenses. It can be done here. P

      Delete