The work forces in beautiful downtown Catemaco are raucously celebrating the increase in the Mexican minimum wage in this area of 1.6 US cents to 47.6 pesos per day.
Actually, the daily minimum wage is calculated on a monthly basis, so the actual minimum wage will be 334 pesos for a 5 1/2 day work week, 61 pesos per work day.
At current exchange rates that is US $ 5.62 per day. So of course everyone is thankful that they have to work only 1/2 of a day to buy the equivalent of a gallon of milk, or 1/5 of a day to buy a 5 gallon water jug, or another 1/5 to buy a kilo of tomatoes. The current estimated weekly cost to feed a family of four in Mexico is 289 pesos.
At current exchange rates that is US $ 5.62 per day. So of course everyone is thankful that they have to work only 1/2 of a day to buy the equivalent of a gallon of milk, or 1/5 of a day to buy a 5 gallon water jug, or another 1/5 to buy a kilo of tomatoes. The current estimated weekly cost to feed a family of four in Mexico is 289 pesos.
Believe it or not, the minimum wage is intended to be the wage that would be sufficient to support a worker and his or her family for a day. Fortunately, at least by Mexican government statistics, there are only about 4% of employees that earn the minimum. It does not include the 35 million workers who are “disappeared” into the not counted economy - taco stands, shoe polishers, mini stores, peddlers, etc.
But, an increase is much more significant than the measly 1.6 cents that were granted for 2007. Much of Mexico is defined in terms of multiples of the minimum wage. So now the minimum income required to obtain an FM 3 visa went up also. It currently stands at 250 times the minimum wage in Mexico City. Traffic tickets are also defined in terms of minimum wages so the cost for red light running also rose (40 times the minimum wage). Other related items will also increase such as productivity bonuses, income tax brackets, service eligibilities, etc. Most other labor categories, (and Mexico pigeonholes most everyone), are also expressed in multiples of the minimum. So the other 96% of counted employees in Mexico also get pay raises. But what is really revolting is the multiple of hundreds of minimum wages that are paid to politicians and high end bureaucrats. As an example, the Mexican Department of Transportation in 2005 paid each executive officer an average of 175,332 pesos monthly or 6,130 pesos (US $565) per day which is 100 times the minimum wage. That includes taxes, but does not include year end bonuses, 20 days vacations, and dozens of other benefits.
Many of us lament the poverty of Mexico. We are probably just envious of the many Mexican who are so rich!
