Communiqué 13/24
October 29, 2024 

Living wage for Mexico City:
13,659 pesos per month

• * That’s the amount of net income, after taxes, for a living wage in Mexico City, concludes study by the Anker Research Institute
• * The cost of a decent basket with the bare minimum for a family of four in Mexico City is 23,493 pesos per month
• * The Anker Research Institute and Citizen Action Against Poverty (Acción Ciudadana Frente a la Pobreza, in the original Spanish) will join forces to promote the initiative for a living wage in Mexico

The living wage that a full-time worker in Mexico City must receive to meet their needs to live with dignity is 15,790 pesos per month including taxes, to receive a net income of 13,659 pesos net; concludes a study carried out by the Anker Research Institute for Citizen Action Against Poverty.

This amount barely covers the essential needs for a household with 2 adults and 2 children, in Mexico City; with one adult who works full-time and another who works part-time (72% according to statistical data). The cost of the decent basket for this typical family is $23,493 per month.

These are the conclusions of the «Report on the Living Wage (Living Wage): Subnational Estimate for Mexico City», presented at a press conference by the author, Marcelo Delajara, Deputy Director and Senior Researcher at the Anker Research Institute. (The full study available here https://www.ankerresearchinstitute.org/mexico-home)

The Anker Research Institute is an international organization founded in 2020 with the support of the Global Living Wage Coalition. Their studies estimate the living wage for specific areas and regions of a country using a combination of data to visualise living conditions and costs at the local level. They have conducted studies in 26 countries; in Mexico, they have 5 studies for different regions of the country.

Delajara explained that the objective of the living wage is to ensure that workers, as well as all members of their household, reach a basic, but decent standard of living. The cost of such a standard of living varies geographically and over time. In the study for Mexico City, the indicators correspond to the month of June 2024, which is considered representative for the current year.

That amount is made up of a living pocket salary of 13,659 pesos per month, plus social security contributions and Income Tax (ISR) for 2,131 pesos per month. 

To determine the living wage, official survey and census data are used to calculate some key parameters, such as the size of the typical family, the number of full-time equivalent workers in the family, household spending patterns, and the prices of food and other goods and services. 

Likewise, based on normative definitions of sufficient and nutritious diet, healthy housing, food and housing costs for a decent standard of living are calculated.

For this study, INEGI data were obtained from the National Population and Housing Census (2020), the National Survey of Household Income and Expenditure (ENIGH, 2022), the National Survey of Occupation and Employment 2024 (ENOE, second quarter) and the National Consumer Price Index (INPC, various periods). The 2021 National Health and Nutrition Survey (ENSANUT), carried out by the National Institute of Public Health (INSP), was also consulted.

According to these estimates, the cost of a basic but decent standard of living for the reference family is 23,493 pesos per month. Which corresponds to 8,436 pesos (36%) for the expenses of a low-cost nutritious diet; 5,924 pesos (25%) for adequate and healthy housing; 8,014 pesos, (34%) for the rest of the goods and services, and 1,119 pesos (5%) for unforeseen events.

From occupation and employment data, using the Anker Methodology, the likelihood of full-time spouse employment was estimated to be 81.3% for men and 62.2% for women.

Regarding the results of the study, Rogelio Gómez Hermosillo, executive president of Citizen Action Against Poverty, commented that the living wage goes beyond the minimum wage and establishes a more demanding threshold for companies that claim to be socially responsible. 

And he commented that in Mexico, the initiative for a living wage has been promoted by various business organizations such as México Digno in Chihuahua, Coincydes in Jalisco, the Alliance for Prosperity in Guanajuato and has the support of Coparmex, the Alliance for Corporate Social Responsibility – AliaRSE, the Social Union of Entrepreneurs of Mexico – USEM, as well as various civil organizations. For these groups, the reference amount of the living wage is 12,500 pesos per month, so this study, together with those previously carried out by the Anker Research Institute for other regions of the country, confirm that it is an adequate amount, as a reference in general, which should be applied according to the reality of each place.

“By 2026 at the latest, the minimum wage will cover the cost of two basic baskets, so the next challenge is how companies can now comply with the living wage as the minimum wage floor, through productivity plans linked to the improvement of working conditions and thus make decent work an essential component of the economy” Gómez Hermosillo explained.

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