The fully loaded wage rate will of course vary depending on the skill level of the employees hired and the location. Wages for unskilled labor in Northern Mexico will fluctuate from around $1.80 per hour up to around $2.50 (fully loaded). Generally speaking, close to the border is more expensive while further south tends to have a lower wage rate. A company will realize significant savings on semi-skilled labor, while professional talent in Mexico such as a very capable plant manager will cost approximately the same amount as it would in the United States.
Turnover is a challenge in Mexico. For most maquiladora related assembly work, expect turnover rates to be between 1.5% to 5% of your work force per month. While this sounds very high, the reality is that tenured employees of over 6 months tend to stay with the company for the long term, but there is a constant churn of new employees who will "test the waters" at the company. While paying a good wage is important, often creating a sense of belonging within the company is the most important.
Mexico has a 48 hour work week. Work beyond 48 hours will require overtime pay. It is possible to have either five 9.6 hour work days or six 8 hour work days.
When calculating your total costs, you will want to take into consider additional fringe benefit that in many cases are expected to be paid by the employer. Busing employees to work and providing meal tickets are two such expenses.
Mexico is divided into 3 distinct regions wherein separate minimum wage rates are applicable (roughly North, Central and Southern Mexico).
See also: Mexico - Shelter Services
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