The net minimum wage in Mexico is USD 254 and in Argentina it is USD 264 at the official dollar exchange rate.
In Spain, Puerto Rico, Paraguay, Colombia, Ecuador and Chile less is spent, according to Picodi.
If the two largest countries in the extreme south and north of Latin America, Argentina and Mexico, are compared, there is one of the two where the minimum wage yields 8.6% more per month to buy the basic food basket. That’s Argentina, according to a January 2022 report published by Picodi, an international thrift store.
The study points out that basic food expenditure in Argentina represents 27.2% of the net minimum wage, while in Mexico 35.8%. These percentages only consider the cost of products that allow the minimum nutrient requirements for an average adult to be achieved, according to reported the company.
In the image below you can see the foods that the company considered in the basic basket, as well as the comparison of costs in dollars among the 11 Latin American countries that it investigated.
64 countries were part of the study of basic food expenditure according to the minimum wage
The study compared the net minimum wages of 64 countries and the increase they have had in the last year. In the comparison it can be seen that the net minimum salary in Mexico is USD 254 and in Argentina it is USD 264 with a cost of the basic food basket of USD 91 and USD 71.82 respectively.
It is worth clarifying that the values of Argentina were calculated according to the exchange price to the official dollar, which at this time is 104 Argentine pesos (ARG). If the values taken in Argentina were transferred to the blue dollar, the net minimum wage is USD 130 and the total cost of the basic basket is USD 35. In any case, these conversions continue to give the same percentage of expense that the company contemplated for food.
The blue dollar price is the one that the market considers to be genuine among the 10 exchange rates that exist in the country due to the exchange rate established since 2019. Therefore, all operations are usually done with this price as a reference, which at this moment it is 210 ARS.
The comparison revealed that Spain is the Hispanic country on the list where the minimum wage for the basic food basket pays the most, followed by Puerto Rico, which makes sense considering that it is a state associated with the United States. They precisely represent an expense of 11.8% and 12.1% of the net minimum wage in each place, respectively.