Benchmark Report: Living Income Report (with Living Wage Annex) and 2024 Update for Chiapas, Mexico

2024 Living Wage Update Report: Rural Areas and Small Towns of Chiapas, Mexico 2024

This report provides updated estimates of family living income expenses and living wage for rural areas and small towns of Chiapas, Mexico. The update for June 2024 takes into account inflation and changes in payroll deductions since the original Anker living wage study carried out in November 2023 (Delajara, et al., 2023).

2024 Living Income Update Report: Rural Areas and Small Towns of Chiapas, Mexico 2024

This report provides an update of the Anker Living Income for rural Chiapas, Mexico, taking into account inflation since the original report. As of November 2023, the estimated living income for rural Chiapas, Mexico, was MXN 16,160 per month. This represents the net income required for a typical size household of 4.5 members (2 adults and 2.5 children, on average) without access to social security, such as the households of smallholder coffee producers, to be able to afford a basic yet decent living standard in the rural region of Jaltenango de la Paz, in Chiapas, Mexico. Without accounting for inflation, this income would not be sufficient to maintain such a standard of living in 2024 due to decreased purchasing power. Between November 2023 and June 2024, the inflation rate in Mexico was 2.4%. Therefore, the updated living income for June 2024 in rural Chiapas is MXN 16,547 per month. The living income for rural Chiapas can be used as a reference value for living income in the other coffee-producing regions of Central and Southern Mexico.

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Original Report

2023 Benchmark Report: Living Income Report (with Living Wage Annex) for Chiapas, Mexico

Abstract

This report presents a study on the cost of a basic but decent standard of living in the coffeegrowing area of Jaltenango de la Paz, Chiapas (Mexico) using the Anker Methodology. The calculation is based on primary data on food prices, housing costs, health care costs and education costs collected in the study area, together with secondary data from the population census, and household expenditure and income surveys. The primary data was obtained from extensive field work in the municipalities of Angel Albino Corzo, La Concordia, Villa Corzo and Villa Flores, which concentrate the majority of the coffee farmers in the area. The cost of a basic but decent life for a typical family of self-employed workers, such as coffee farmers, is estimated at MXN 16,160 (USD 925) per month (or MXN 193,918, USD 11,100 per year) as of November 2023. This figure is known as the living income for families of self-employed people and smallholder producers. Likewise, based on additional data on the labor market in rural and urban areas of Chiapas, and rates for social security contributions and income tax, an annex presents the estimate of the living wage for the study area. This living wage is MXN 10,877 (USD 623) per month (or MXN 130,524, USD 7,476 per year) for workers with social security. This is made up of a monthly net living wage (take-home pay) of MXN 9,717, and social security contributions and income tax payments for an estimated monthly amount of MXN 1,160. A second annex discusses how the study results are also representative for coffee-producing areas in four other states in central and southern Mexico

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Benchmark Report: Living Wage Report and 2024 Update for Michoacán, Mexico