Inquiries concerning the remuneration of minimum-wage and casual laborers in Mexico City were made, with the results presented here.
In Mexico, the cost of living has been on the rise, with rents in cities like Mexico City increasing, forcing some residents to relocate to more affordable areas. This is a reality faced by many, as a significant portion of the population struggles to meet their basic needs.
According to a recent study by the think tank Mexico ¿como vamos?, the majority of people in Mexico don't earn enough to cover food, housing, education, and transport expenses. This is evident in the salaries of various workers across the country.
For instance, a newspaper vendor on Insurgentes earns 294 pesos (approximately US $16) a day, an amount slightly above the minimum wage. A supermarket cashier, on the other hand, earns around 4,900 pesos (US $262) per month, while a car washer at a Cadillac dealership takes home around 4,000 pesos (US $214) per quincena (a period of 15 days).
The minimum wage in Mexico has seen an increase in recent years, but it still falls short of providing a living wage for many. For example, a pharmacy employee named Ángeles takes home between 3,000 and 4,000 pesos (US $160-$214) per quincena, depending on her hours. This is slightly above the minimum wage, but it's not enough to cover all her expenses, especially in a city like Mexico City where a monthly income of 10,000 pesos is generally considered low and below the living wage for many occupational groups.
Workers now have the legislated right to sit down and take a break during their shifts, and annual paid vacation days have doubled from six to 12 for formal sector workers who have completed one year of employment. However, these improvements might not be enough to significantly improve the living conditions of those in the lower class, as evidenced by the fact that based on their salaries, many workers are part of Mexico's predominant lower class, according to the social class salary criteria established by the national statistics agency INEGI.
President Claudia Sheinbaum attributes the reduction in poverty levels to increases in the minimum wage and government support. According to her, these measures were key factors in 13.4 million Mexicans exiting poverty between 2018 and 2024. However, the struggle for a living wage continues, with many workers still earning near or below the minimum wage.
The earnings of Pemex gas station attendants, for example, come solely from tips, with an income of between 500 and 800 (US $27-$43) pesos per day. An elderly vendor of amaranth topped with nuts and raisins is paid 1,000 pesos (US $54) per week, which is below the minimum wage, and his pension of 6,200 pesos (US $332) every two months is also below the minimum wage when combined with his wage.
The situation is more challenging for those living in the city, where the cost of living is higher. For instance, Juárez and her husband pay 6,000 pesos (US $320) rent for their apartment near Plaza Garibaldi.
Inflation has also been a significant issue, with Mexico's annual inflation rate hitting 8.7% in August 2022, the highest level in more than two decades. This high inflation rate has made it even more difficult for workers to make ends meet.
Despite these challenges, there are success stories. A seasoned shoeshiner on Mexico City's Insurgentes Avenue is doing well with his business, taking home between 500 and 1,000 pesos (US $27-54) per day. An Uber driver earns around 9,800 pesos (US $524) per month, while a Herbalife worker named Juan Hurtado earns 10,000 pesos (US $535) per month, working five hours a day five days a week.
The struggle for a living wage continues in Mexico, with many workers earning near or below the minimum wage. The government's efforts to increase the minimum wage and provide support to those in need have helped reduce poverty levels, but more needs to be done to ensure that all workers can earn a wage that allows them to meet their basic needs.
