Wages in Latin America

While Latin American wages have continued to grow, the region saw reduced economic growth in 2024, even as countries in the region cut interest rates. Inflation remained elevated in 2024, eating into household budgets and forcing Latin American countries to walk a fine line between restrictive and easing economic policy.

Mexico

As Mexico has grown post-pandemic, so have wages. In 2024, wages in Mexico grew 7.7%, from an average hourly nominal rate of $3.54 USD to $3.62 USD* . This is higher than 2022 and 2023, up from 4.3% and 3.6% respectively. Mexican national daily minimum wage has also been raised 12% in 2025, from $12.28 per day to $13.76*. Average hourly manufacturing wages grew in 2024 by 24.4%, from an hourly average of $4.10 USD to $5.10 USD. Mexican wages are likely to continue to grow in 2025 but could be stifled by the expanding economic conflict with the US if key sectors are affected. The Mexican Peso has not seen much fluctuation against the USD, leading foreign companies to have the same labor buying power over the past five years.

Brazil

Brazilian average monthly income rose by 4.1% in 2024, from $511.98 USD to $532.91 USD*. In January 2025, the minimum monthly income rose from $227.01 USD to $244.72 USD*, or 7.8%. Over the past five years, the Brazilian Real has stayed relatively strong against the USD, meaning foreign companies have had the same buying power for labor.

Argentina

Argentinian average monthly earnings grew by 52.5% for the first half of 2024, from $731.38 USD to $1,115.50 USD*. Accompanying this rise in average monthly earnings was a rise in the minimum monthly earnings, which grew at 74.4%, from $151.32 USD to $263.84 USD*. Nominal wages will continue to climb, as Argentina had an annualized inflation rate of 117% in 2024. Although wages have increased nominally, the Peso has depreciated by 88% against the USD over the past five years. As a result, companies paying in USD will find their money goes further in the Argentinian market.

*January 1, 2025, exchange rate

2025 Outlook

Latin American wages are expected to continue to grow in 2025, even as the region continues to struggle. Latin America is likely to get hit from two sides in 2025. First, the region is highly exposed to risks surrounding a trade war with the US. Latin American countries export a lot to the US, and trade barriers would lead to reduced exports and growth. Second, Latin America is exposed to the slowdown of the Chinese economy. China has many investments in the region and as China pivots to domestic consumption, Latin America is likely to see reduced foreign investment.