The average wage information for a direct employee in a "Maquiladora" in any of the six northern border states will fall within the range of $2.00 to $3.00 an hour. Calculating the exact fully loaded cost of a direct employee on an hourly basis involves a complicated formula composed of a daily base salary, paid Sundays, mandatory bonuses, market based compensation schemes (busing, food tickets, etc.) and taxation. UnderstandMexico has prepared the following example wage calculation to help investors project the cost of manufacturing in Mexico
| Cost (pesos) | Cost (dollars) | ||
|---|---|---|---|
| Fully Loaded Hourly Wage | 25.60 MX | 2.45 USD | |
| Base Daily Salary: | 110 MX | 10.52 USD | |
| Working Days | 298 Days | 32,780 MX | 3,133.84 USD |
| Paid Sundays | 52 Days | 5,720.00 MX | 546.85 USD |
| Paid Holidays | 7 Days | 770.00 MX | 73.61 USD |
| Paid Vacation Days | 8 Days | 880.00 MX | 84.13 USD |
| Mandatory Bonuses | |||
| Vacation Bonus | 27% | 237.60 MX | 22.72 USD |
| Christmas Bonus | 30 Days | 3,300.00 MX | 315.49 USD |
| Profit Sharing | 8 Days | 880.00 MX | 84.13 USD |
| Total Cash Payment | 44,567.60 MX | 4,260.76 USD |
| Non Cash Benefits | |||
| Life Insurance | Yearly | 1,000 MX | 95.60 USD |
| Disability Insurance | Yearly | 1,000 MX | 95.60 USD |
| Day Care | Yearly | 1,000 MX | 95.60 USD |
| Taxation | |||
| Social Security | 19% | 8,802.10 MX | 841.50 USD |
| Minimum Wage Tax | 2.9% | 1,308.06 MX | 125.05 USD |
| State Taxes | 2.5% | 1,114.19 MX | 106.52 USD |
| Housing Fund Contribution | 5% | 2,228.38 MX | 213.04 USD |
| Total Yearly Cost | 61,020.33 MX | 5,833.68 USD | |
| Fully Loaded Cost Per Hour | 25.60 MX | 2.45 USD |
*The exchange rate used is 10.46 pesos to one US Dollar.
**The wage formula is correct to the best or our knowledge but UnderstandMexico takes no responsibility for its accuracy.
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