In the last few years, Mexico has been regarded as the country of choice for companies wanting to outsource different business functions due to its benefits in terms of labour force skills, affordable costs, and strategic location.
The average monthly salary in Mexico in the year 2024 is approximately 883 USD, and the average yearly salary is approximately 10,696 USD.
Nonetheless, future business leaders must understand that salaries in Mexico are one of the key areas that should be considered before outsourcing the work. Not only may companies learn about average salaries in Mexico but they can also make properly made cost projections, resource allocation, and overall business strategies based on the insights.
In this article, we will see how much can be paid in Mexico, including sharing the full details that help companies looking for a place to outsource.
How much do employees get paid on average in Mexico?
The average monthly salary in Mexico in the year 2024 is approximately 883 USD, and the average yearly salary is approximately 10,696 USD.
In the year 2023, The average salary in Mexico is approximately 33,200 MXN per month.
This average salary in Mexico varies depending on different sectors like IT, healthcare, production, customer services, etc.
The salary range in Mexico depends on various factors like education degree, and work type, experience of work in years (part-time, contract, or permanent). A Mexican worker earns an average annual salary of 399,000 MXN according to Salary Explorer.
Generally, the average salary may range from 8,410 MXN (lowest salary) to 148,000
Average Salary in Mexico
 The average monthly salary in Mexico in the year 2024 is approximately 883 USD. The average yearly salary in Mexico in the year 2024 is approximately 10,696 USD. According to remotepad.com
Minimum Salary in Mexico
The minimum wage is the minimum salary received per workday.
According to the government of Mexico, starting from January 2024, the general minimum wage will be 248.93 pesos per day with a 20% increase from 207.44 pesos. The north border zone of Mexico will have a minimum wage of 374.89 pesos per day also with a 20% increase from the previous minimum salary.
Median Salary in Mexico
The median salary in Mexico is approximately 10,400 MXN per month. The median income in Mexico is generally measured in pesos and varies widely depending on various factors. Median salaries can vary across different regions of Mexico and among different sectors and professions.
Average Annual Increase in the Salaries of Mexican Employees
Employees in Mexico usually get an increase in monthly salary every 18 months. The increment of their salary is usually around 8% of their annual salary.
The increase in the base general minimum wage will be integrated with the in-force minimum wages of 2023, plus the sum of an independent recovery amount (MIR) of 41.26 P for the ZLFN and 27.40 P for the Rest of the country, and a 6% increase by the fixation on the result of these.
Factors Affecting Average Salaries in Mexico
Average salary annual increase by industry
The average salaries of workers in a certain field can be greatly influenced by the time workers have spent on the job as they are paid more than new employees.
Following is the annual average salary according to different industries,
| Industry | Annual Average Salary |
|---|---|
| Health care | 3.9% |
| Technology | 6.2% |
| Banking | 5.8% |
| Construction | 4.1% |
| Manufacturing | 4.5% |
Source: salaryexplorer.com
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Note: The figures given here are in general only averages and no specific numbers. The Average salaries in Mexico and increments will largely differ and be dependent on the person as well as many aspects as explained above.
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2. Average salary annual increase by education
The average salary per month in Mexico is determined depending on various factors. Among all the factors, education level is perhaps the most important one, as a person with higher education is more likely to find a higher-paid position.
These are the annual average salaries of employees in Mexico according to their educational qualifications:
High School Diploma
Many persons with a high school diploma take up basic-level jobs. These positions are one of the lowest in terms of pay. As another example, a customer service role can be worth up to 15,319 MXN per month. The average annual salary increase for individuals with a high school diploma is around 3% to 5%.
College Education
College graduates enter the labour market with better earning opportunities. Some tech and skilled roles that need a college degree could pay better even compared to those jobs that only need a high school education. The average annual salary increase for college graduates in Mexico can range from 5% to 10%.
Bachelor’s Degree
A generous increase in the salary can be noticed when people hold a bachelor’s degree. Professionals like software engineers getting about 30,000 MXN have invested in such undergraduate studies. The average annual salary increase for individuals with a bachelor’s degree is around 7% to 12%.
Advanced Degrees
Individuals with master’s degrees or Ph.D. qualifications will be awarded even higher salaries, that show the in-depth knowledge and expertise acquired. In addition, higher education boosts chances of being chosen on the job market, and those usually offer more pay due to the complexity of the speciality.
 Professionals with master’s or PhD degrees often command premium salaries and may experience annual salary increases of 10% or more.
Source: remotepad.com
3. Average salary annual increase by Profession
The industry in which one works as well as the job role also play a role. It is worth noting that some industries such as finance, IT, and production tend to offer higher average salaries than others.
Here’s The annual average salary which differs according to different professions:
| Industry | Annual Average Increment |
|---|---|
| Information Technology -manager | 40,000 MXN |
| Software Engineer | 30,000 MXN |
| Data Analyst | 18,632 MXN |
| Legal Advisor | 33,979 MXN |
| Interior Designer | 22,653 MXN |
| Teacher | 15,447 MXN |
| HR Manager | 59,475 MXN |
Source: glassdoor.co.in
4. Average annual salary comparison by city
Geographical location matters greatly because salaries vary according to the cost of living in that particular region.
Here’s The annual average salary which varies according to the city:
| City | Annual Average Salary |
|---|---|
| Acapulco | 39,100 MXN |
| Buenavista | 32,200 MXN |
| Cancun | 39,000 MXN |
| Ecatepec De Morelos | 45,600 MXN |
| Fresnillo | 28,000 MXN |
| Guadalajara | 45,200 MXN |
| Iguala | 28,000 MXN |
Source: salaryexplorer.com
Cost of Living in Mexico
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1. Transportation charges:
The cost of all fares is 5 pesos each or around 25 cents and may only be paid in cash. You can stand in the ticket booth or buy a paper ticket inside the station, or you can buy a smart card (tarjeta) for 10 pesos. The card could be reloaded with up to 120 pesos at a given time and it can be used for many people travelling together.
2. Housing costs:
In general housing costs are the most expensive ones among all of the other living expenses, in Mexico A single person’s estimated monthly costs are 682.8$ (11,642.8MXN) without rent. The cost of living in Mexico is, on average, 40.1% lower than in the United States. Rent in Mexico is, on average, 61.7% lower than in the United States.
3. Healthcare costs:
The medical and social insurance for the Mexican workforce is represented by the Instituto Mexicano del Seguro Social otherwise known as IMSS. Employers typically contribute 25-35% on top of their employees’ salaries to IMSS, which covers: Health care.
4. Income Tax:
The tax rates are between 1% and 3% of the salary. The Employer keeps a sum and then sends it all at once to the right people in charge. Employers also make social security contributions on behalf of their employees. Employers pay the amount equal to 7.58% of employee’s wages.
Is it a good idea to outsource your company to Mexico?
Definitely! Mexico is now a top choice for outsourcing thanks to its convenient location, skilled workforce, and affordable business environment. Being close to the USA and having beneficial trade deals, companies can simplify their processes and reduce Operational challenges. Moreover, Mexico offers well-trained workers in various fields such as production and customer service, ensuring high-quality results. With Time Champ’s expert help, finding your way through outsourcing becomes easy, creating the way for business growth, increased efficiency, and higher profits.
Six Leading Industries for Outsourcing Operations to Mexico
1. Manufacturing:
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Mexico has established itself as a production powerhouse, most particularly in industries such as electronics, aerospace, medical devices, etc. With a skilled workforce, proximity to major markets like the United States, and the UK, and favourable trade agreements, Mexico offers competitive advantages for companies seeking to outsource manufacturing operations. The country’s well-developed network, which includes industrial parks and transportation networks, further boosts its charm as an outsourcing destination in the production sector.
2. Technology and IT Services:
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The rapidly growing technology sector in Mexico, combined with a youthful and well-educated workforce, makes it a captivating location for outsourcing IT services, software development, and technical support. Cities such as Guadalajara, often dubbed the “Mexican Silicon Valley,” provide a supporting environment for technology firms, boasting access to high-end talent, research facilities, and innovation centres.
3. Medical and Healthcare Services:
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The healthcare sector in Mexico offers outsourcing opportunities in areas such as medical billing, coding, telemedicine, and clinical research. With a growing number of healthcare professionals and modern healthcare facilities, Mexico provides a reliable and cost-effective option for companies looking to outsource non-core medical services while ensuring compliance with international healthcare regulations.
4. E-commerce and Logistics:
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With the ongoing global growth of e-commerce, delegating e-commerce fulfilments and logistics tasks to Mexico can optimize supply chain management and minimize shipping expenses. Mexico’s advantageous global position, well-developed transportation infrastructure, and proficient workforce position it as an excellent centre for warehousing, distribution, and last-mile delivery services.
5. Human Resources (HR):
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Outsourcing Organizations aiming to optimize HR operations such as recruitment, training, payroll handling, and employee benefits oversight can find advantages in outsourcing to Mexico. In Mexico, HR outsourcing provides affordable solutions, expert advice on following rules, and access to HR experts who understand both Mexican laws and international practices.
6. Digital Marketing and Advertising:
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In Mexico, there’s a growing digital marketing industry that offers opportunities for businesses to reach more people online, especially those who speak Spanish. By giving tasks like making content, managing social media, improving search results, and paying for ads to Mexican professionals, companies can save money and get great ideas from talented people in Mexico.
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What is Time Champ?
Time Champ is an employee monitoring and productivity tracking software that helps businesses to continuously monitor all the activities of employees done during working hours. Time Champ is well known for its remote as well as hybrid working operations, Time Champ can monitor remote employee working activities and provides all the collected data in the form of graph sheets for easy analysis.
Some of the Key Features of Time Champ that can help in outsourcing businesses to Mexico.
1. Automatic attendance
Time Champ automatically capture the employee attendance so that there is no need to update the information manually. Time Champ’s time tracking feature also tracks the time your outsourced employees spend on different websites, projects and tasks. Time Champ then presents this information in a user-friendly dashboard.
2. Productivity Monitoring
Time Champ’s productivity tracking feature breaks down the categories as productive time, non-productive time, and neutral time of the employee with different colour schemes for every aspect. And also shows the time spent on each app along with the sites they have visited. These insights on employee productivity can greatly help employers to efficiently manage and improve their employee productivity.
3. Screenshots and screen recordings
Time Champ provides a wonderful feature to effectively monitor employee activities which is taking screenshots and screen recordings as per employer requirements for future references. You can schedule the screen recordings and screenshots as per your company’s requirements this will enhance the security and increase the accountability of the employee.
4. Project Management
Time Champ’s project management feature provides real-time tracking of project progress, even for outsourced staff, through a set of reporting and task management options. Employers can monitor task completion, manage client relationships, and restrict role permissions while receiving thorough progress reports, ensuring that all outsourced projects are completed on schedule and with high quality.
5. Audio, Time, and location tracking
Time Champ also provides Audio tracking, time tracking and location tracking features for efficient monitoring and to get real-time updates from the teams working on a specific project.
- Â Using the Audio tracking feature, employers record the entire conversation from both sides of a call.
- With the help of the time-tracking feature Get precise employee details effortlessly like login and logout time, productive hours, non-productive hours, and neutral time.
- Location tracking helps to navigate the live location of a team or employee to find out the updates on a specific project. Set virtual boundaries and trigger tracking automatically upon entry or exit of those boundaries.
Unlock seamless management for your outsourced team with Time Champ. Sign up now for enhanced productivity and easy project tracking.
Conclusion
In conclusion, the average salary in Mexico varies according to different factors like education, location, profession, and industry. Although some industries in Mexico have an average salary that can be considered low, the country stands as a competitive cost structure compared to other outsourcing destinations, and companies can benefit from highly skilled and educated workers and modern infrastructure. Mexico has a variety of resources for businesses, like skilled workers in production, customer service, and technology. This makes it easy for companies to find the right expertise.
Also, Mexico is close to the United States, which helps with communication and teamwork, especially for businesses in North America. By using outsourcing trends, Mexico’s strengths, and Time Champ’s employee monitoring features companies can grow and stay competitive globally.
Discover the power of efficient team management with Time Champ. Schedule your free demo now and unlock the potential to oversee your employees effortlessly!
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FAQs
The average salary in Mexico varies according to factors like location, industry, and level of education. However, the most recent numbers show that the average monthly salary in Mexico is about 15,000 MXN.
There is less income in Mexico than in many developed countries. Meanwhile, although Mexico provides low labour expenses at the same level as the countries that belong to North America, Europe or parts of Asia as well, it still offers very competitive labour costs compared to those countries.
The factors determining the average salary in Mexico are economic conditions, industry demand, level of education, experience and geography.
Salaries in Mexico can vary a lot about the industry and sector. Normally, the part of the finance, technology, and manufacturing industry, pays an annual salary which is higher than the part of the industry like agriculture and hospitality.
Over the past 10 years, salaries in Mexico have been slightly going up because of economic factors, like inflation rates, market demand, and government rules.
For example, areas like manufacturing, information technology (IT), customer services, finance, and healthcare are the ones, which are leading sectors for the Mexican market to be the choice for outsourcing.
A set of vital issues that companies need to assess before they decide to outsource to Mexico are whether the country has a suitable infrastructure, legal system, workforce if it fits their culture or not and what are the possible risks.
Sending the jobs to Mexico might create jobs for local workers due to the attraction of foreign investment, which in turn boosts the economy and provides jobs in different sectors.
Mexico has a skilled workforce, good work, and a strong work spirit which is a real advantage in the global outsourcing market.
The government’s policies like trade agreements, tax credits, workplace rules, and investment incentives hold a large chunk of responsibility for the outsourcing trends of Mexico by affecting business decisions and market trends.