Benchmark Report: Living Wage Report and 2024 Update for Michoacán, Mexico
2024 Living Wage Update Report: Living Wage Report for Michoacán, Mexico
This report provides updated estimates of family living income expenses and living wage for non-metropolitan urban and rural northwestern regions of Michoacán, Mexico. This region is strategic regarding the production of avocados, strawberries, berries, sugar cane, and corn. The update for 2024 takes into account inflation and changes in payroll deductions since the original Anker living wage study carried out in October 2020 (Delajara, et al., 2020).
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Original Report
2020 Benchmark Report: Living Wage Report for Michoacán, Mexico
Background
This report is the first living wage report carried out for Mexico using the Anker Methodology. It focuses on the cost of a basic but decent life for workers in the non-metropolitan urban areas and rural areas of Northwestern Michoacán. The main result is that a family of 4 members (2 adults and 2 children) requires, as of February 2020, a monthly net income of 16,664 MXN (884 USD) to afford a basic but decent life in this part of Mexico. Food costs amount to 37.6% of this family budget, and housing costs, including rent, utility costs and minor repair and maintenance amount for another 14.5%. The share of the budget for all nonfood non-housing (NFNH) goods and services is 42.9%. The remaining 5% is an additional amount separated for sustainability and emergencies. This translates into a living wage of 10,223 MXN (543 USD) per month, net of social security and income taxes, for a full-time worker in the study area. We then estimate that the gross living wage that workers need to receive is 11,782 MXN (625 USD) per month, by taking into consideration the social security contribution and income tax which workers earning the living wage would need to pay. Preliminary analysis, included in the Annex of this study, indicates that this living wage is also applicable to 71 municipalities of the states of Michoacán, Guanajuato, Jalisco and Colima, which, together with those in the study area, constitute a well-defined economic region of Mexico.
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