What is the Minimum Wage in Mexico? Average Wage in the Manufacturing Industry

The average wage in Mexico in the manufacturing industry is different than the minimum wage in Mexico. The average production worker salary is $2.50 dollars an hour representing a dramatic difference from the actual minimum wage. Foreign companies manufacturing in Mexico strive for employee retention as evidenced by attractive average wages and benefits packages.

As a reference, the average wage in Mexico per day for the border region was raised to $176 pesos a day ($9.26 dollars a day when the Mexican peso is at 19) in January 2019, while the non-border region minimum wage is at $88 pesos a day ($4.63 dollars a day). This federally mandated wage increase did not impact manufacturers as they are already paying well above the Mexican minimum wage while still representing dramatic savings over US minimum wages.

Production Worker Salary

The average salary in Mexico is affordable and can span entry-level assemblers to a highly skilled engineer

These average wages for common manufacturing positions in Mexico are fully burdened, meaning they include the hourly wage plus legally required benefits such as vacation pay, social security, housing, transportation, and more.

If you are interested in learning more about the average pay in Mexico or any other costs related to doing business in Mexico, feel free to contact us.

How a Shelter Company Helps You Determine Average Wage

The Maquiladora Shelter Program is an opportunity for U.S. and foreign manufacturers to set up manufacturing in Mexico in accordance with Mexican laws, quickly, at lower startup costs, and with minimal risk.

Part of CPI’s shelter services in Mexico is to work with you to determine affordable and competitive average wages for your Mexican employees. In addition to administrative back-office services like recruitment, hiring, payroll, imports, and finished product exports. CPI’s Manufacturing Shelter Program makes sure you are in compliance with Mexican labor laws and standards and grants you access to existing licenses and permits to operate in Mexico. 

Typical Workweek in Mexico: Shifts, Holidays and Employee Benefits

Mexico’s workforce is considered highly productive working 48 hours a week compared to 40 hours a week in the United States. In addition, to adhere to Mexican labor laws there are various holidays as well as bonus payments for vacations and Christmas. Read more about the typical workweek in Mexico, shifts, holidays, and benefits you are legally required to provide when doing business in Mexico.

Free Labor Cost Analysis

Compared to the average wage in the United States, manufacturing in Mexico can offer you significant savings in labor costs while maintaining U.S. manufacturing quality standards. Let us help you see the reality of the labor cost savings by running a no-obligation, free labor cost analysis for your potential manufacturing operation. Click here to run the numbers today!

Other resources:

• Contract Manufacturing in Mexico
• North American Free Trade Agreement (USMCA) Status
• Products made in Mexico