Monday, November 27, 2017

Minimum Wage in Mexico

I read an article in the recent Guadalajara Reporter about the wage increase here in Mexico. The Mexican government announced that the minimum wage as of Dec.1st will go up 10.4 percent, from 80.04 pesos a day to 88.36 pesos a day.  This is the highest annual raise in more than a decade. That is the equivalent to 45 cents a day raise. The bare minimum that a person needs to live a dignified life in Mexico is 2822 pesos a month, which would be 94 pesos a day. It is estimated that a quarter of all Mexicans are living in extreme poverty. 

As of today, this is the conversion rate into American Dollars. 80.04 pesos is 4.30803 American dollars. Remember this is pay for a DAY not for an hour here in Mexico.  88.34 pesos, their raise this year, makes it 4.75245 American dollars. And lastly, 2822 pesos, today is only 151.871 American dollars.

So no wonder many Mexicans think that the expats are wealthy. We ARE wealthy compared to their minimum wages. Remember these figures the next time you leave a tip and you are trying to think of how much to put on the table. Be as generous as you can and still feel good about it.