Living Wage in Mexico: A Global Perspective
On Friday, I had the privilege of presenting at an UN Global Compact Mexico event, held at the United Nations headquarters in Mexico City. This event, the culmination of the Compact’s 2024 activities, provided a significant platform to discuss one of the most critical challenges of our time: ensuring a living wage for workers in Mexico and beyond.
Setting the Stage
Living wages are not a new concept, but their relevance has never been more urgent. Defined as remuneration that allows workers to meet their needs and those of their families at a basic but decent level, a living wage encompasses essential human rights like food, housing, healthcare, and education. They are the foundation of a dignified life and a sustainable economy. The Anker Methodology®, developed by Richard and Martha Anker, has set the global standard for calculating living wages. This methodology ensures that wages are rooted in evidence and account for local realities.
In Mexico, our work has produced five regional living wage benchmarks, alongside one subnational estimate for Mexico City ̶ with eight more subnational estimates to be published soon. These studies provide a robust foundation for advocating fair wages across diverse sectors and regions.
“A significant portion of my presentation focused on how living wages are increasingly embedded in global regulations and voluntary business standards”
Living Wage in Global Regulations and Initiatives
A significant portion of my presentation focused on how living wages are increasingly embedded in global regulations and voluntary business standards. For instance:
The EU Corporate Sustainability Reporting Directive (CSRD) and German Supply Chain Act now require companies to report or even ensure adequate living wages throughout their value chains.
The OECD Guidelines for Multinational Enterprises and initiatives like the UN Global Compact Forward Faster Campaign highlight living wages as a cornerstone of responsible business.
These frameworks mark a turning point in recognizing living wages as a human right and a necessity for ethical supply chains.
Mexico in Focus
Our recent estimates reveal the critical wage gaps in Mexico. For instance, the living wage for Mexico City, as of June 2024, reflects the economic challenges faced by workers in urban centers. By using the Anker Methodology®, we ensure that these estimates are transparent, evidence-based, and comparable across geographies. This approach not only strengthens advocacy but also provides actionable insights for businesses, unions, and policymakers
Source: ARI
Map from the presentation - Invitación keynote speaker | Pacto Global México
“The path toward universal living wages is not without challenges. However, as I shared in my concluding remarks, I remain optimistic. Implementing living wages is not just an ethical imperative—it is an economic one. A fair wage system creates more inclusive and prosperous societies and lays the groundwork for sustainable growth.”
ILO Collaboration and Global Alignment
A highlight of 2024 was the ILO Tripartite Meeting of Experts on living wage policies. The meeting underscored the importance of evidence-based living wage estimations, robust stakeholder engagement, and periodic adjustments to reflect economic realities. I’m proud to share that the Anker Methodology® fully aligns with these principles, further validating its position as the gold standard in wage estimation.
Looking Ahead
The path toward universal living wages is not without challenges. Resistance from certain sectors and the complexities of global supply chains can slow progress. However, as I shared in my concluding remarks, I remain optimistic. Implementing living wages is not just an ethical imperative—it is an economic one. A fair wage system creates more inclusive and prosperous societies and lays the groundwork for sustainable growth.
Source: ARI
A focus group discussion with coffee growers in Pluma Hidalgo, Oaxaca, April 2023
A Call to Action
As we look to 2025, the work continues. Expanding our subnational estimates in Mexico, refining methodologies for high-income countries, and collaborating with global organizations remain at the forefront of our agenda. I encourage businesses, policymakers, and civil society to join us in this vital mission.
Thank you to the UN Global Compact Mexico team for organizing such an impactful event. Together, we can advance the journey toward a fairer, more equitable world.
For more insights on living wage benchmarks and our work at the Anker Research Institute, visit www.ankerresearchinstitute.org.
Mexico City, December 2024
Marcelo Delajara is the Deputy Director and Senior Researcher at the Anker Research Institute, specializing in living wage methodologies and analysis.
For more information about our research in Mexico, contact ARI’s Senior researcher and Deputy Director,: Marcelo Delajara mdelajara@ankerinstitute.org
For general inquiries about the Anker Research Institute’s work, contact: inquiries@ankerinstitute.org
Views expressed are the authors. The opinions expressed here belong solely to the author and may or may not reflect the views of Anker Research Institute.