Mexico Average Salary: Detailed Income Insights for 2025

What is the Average Salary in Mexico?

In 2025, the average salary in Mexico is approximately MXN 29,200 annually, or about USD 1,437. This gives you a broad idea of what to expect, but keep in mind that both wages and salaries can vary based on factors like experience, location, and industry. For example, tech professionals in Mexico City may see higher wages compared to those in more rural areas.

It’s also important to note that wages in Mexico are still lower than in many Western countries, but the cost of living is significantly more affordable. This means that while employee salaries might be lower, they can often enjoy a similar standard of living.

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Comparative Profession Salary Earnings in Mexico

Salaries in Mexico can vary quite a bit depending on the industry, your experience level, and where you're located. Here’s a general breakdown of monthly and annual salary ranges in Mexico, based on job level:

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Source: Paylab

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Industry-Specific Salary Earnings

Salaries in Mexico can differ significantly across industries.  The table below shows salary ranges for key sectors in 2025, like IT, finance, real estate, healthcare, and law, with averages from major cities such as Mexico City, Monterrey, and areas near the northern border. Keep in mind, salaries in rural areas or lower-paying industries (think tourism or agriculture) are usually lower. Here's an overview of average annual salaries in key sectors:

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Source: Paylab

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Technical and managerial roles tend to get paid more, reflecting the growing demand for specialized skills in Mexico’s changing job market.

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Labor Market Overview

Mexico’s labor market in 2025 shows some promising signs. Unemployment remains low at 2.7%, signaling a stable job market. However, employment growth has slowed, with only  0.2% increase in formal employment in April 2025 – the lowest in years.

The services sector still makes up more than 60% of the workforce, but issues like underemployment and a skills mismatch are ongoing challenges. Investing in education and training will be key to matching the workforce to the needs of modern industries.

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Benefits of Hiring Employees in Mexico

Mexico offers a fantastic environment for businesses looking to expand their teams. With a growing talent pool, cost-effective labor, and a strategic location, hiring in Mexico comes with multiple advantages.

• Access to a Skilled Workforce: Mexico boasts a well-educated workforce, particularly in fields like IT, engineering, and finance. The country’s top universities and technical institutions produce graduates with the skills necessary for today’s competitive market.
• Competitive Labor Costs: Wages in Mexico are significantly lower than in North America and Europe, making it a cost-effective choice for businesses seeking high-quality talent without the high costs.
• Comprehensive Employee Benefits: Mexico offers various employee benefits, including paid vacation, sick leave, and social security contributions. These benefits are regulated by the government and help improve employee satisfaction and retention.
• Government Incentives: The Mexican government provides tax incentives and other support for foreign businesses, including special economic zones and financial programs to attract investment. Employers can also offer employees valuable benefits packages, including health insurance and pension plans.
• Strategic Geographic Location: Located near the U.S., Mexico is a prime spot for trade and collaboration between North America and Latin America. This location makes it easier to manage cross-border operations, reducing logistics costs and boosting overall efficiency.
• Cultural and Linguistic Advantages: As a Spanish-speaking country, Mexico offers businesses access to a large network of Spanish-speaking professionals, especially helpful for companies expanding into Latin America or other Spanish-speaking regions.
• Emerging Tech Ecosystem: Mexico is rapidly becoming a tech hub, particularly in cities like Guadalajara and Monterrey, where a strong startup scene and tech talent pool are emerging. This makes Mexico an attractive destination for tech-driven roles and innovation.
• Robust Infrastructure: Mexico has a well-developed infrastructure, including modern transportation, logistics networks, and strong communication systems. This makes it easier for businesses to move goods and resources efficiently, helping streamline operations.

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Factors That Influence Salaries in Mexico

Salaries in Mexico are shaped by several economic and market factors. If you're looking to hire talent in the country, it’s important to understand these factors to make sure you're offering competitive pay packages:

1. Experience Matters

Experience is a major factor when it comes to salary in Mexico. Generally, professionals with several years in the field can expect higher pay, especially in technical and managerial roles. Entry-level jobs naturally pay less, but as workers build expertise and take on more responsibility, their salaries can rise quite a bit. This is particularly true in industries like tech, finance, and healthcare, where senior-level roles often come with significant pay increases based on experience and specialized knowledge.

2. Education and Skills

Education and specialized skills play a big role in how salaries are set. Professionals with advanced degrees or certifications in areas like law, engineering, or IT tend to earn higher wages. For example, tech experts with experience in AI or cybersecurity are in high demand and can command premium pay. On the flip side, industries like retail or hospitality may focus more on experience and customer-facing skills than formal education, often leading to lower salaries in those fields.

3. Industry Sector

The industry you’re in can make a big difference in salary expectations. Fields like IT, finance, and engineering tend to pay the most, driven by the demand for specialized skills and the growth of these sectors. On the other hand, industries like hospitality or retail typically offer lower pay but provide more opportunities for entry-level positions.

4. Location, Location, Location

Where you’re hiring plays a huge role in salary levels. Cities like Mexico City, Monterrey, and Guadalajara tend to offer higher salaries to account for the higher cost of living in these urban areas. In contrast, salaries in rural regions are usually lower, but so are living expenses. When setting pay, it’s crucial to factor in the region you’re hiring in to ensure that your compensation is competitive for that specific location.

5. The Labor Market

Mexico’s labor market is constantly evolving. While the unemployment rate is low at 2.7%, the demand for talent varies by sector. For example, there’s a high demand for skilled professionals in tech or engineering, which drives wages up in those fields. On the other hand, if there’s an oversupply of workers in a particular sector – like customer service – wage growth could be slower. Keeping an eye on these shifts will help you stay competitive when it comes to compensation.

6. Collective Bargaining Agreements

In certain sectors, collective bargaining agreements set minimum wage standards and working conditions. While not as widespread as in some other countries, these agreements can still have a significant impact in Mexico, especially in industries like manufacturing or public service. If you're hiring in these sectors, you’ll need to factor these agreements into your compensation packages to stay compliant with industry standards.

7. Government Policies and Minimum Wage

Government policies, particularly around minimum wage, can influence salaries across Mexico. In 2025, the federal minimum wage was increased by around 20% to MXN 207.44 per day, which aims to improve workers' purchasing power and reduce income inequality. These changes can affect wages across various industries, as employers often adjust their pay scales to stay in line with these new regulations.

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Hiring Trends & Future Salary Outlook in Mexico

Mexico’s labor market is evolving, with several key trends shaping hiring practices and salary expectations. Here’s what to keep an eye on:

1. Nearshoring Growth

The trend of nearshoring, or relocating manufacturing closer to the U.S., is creating more job opportunities in Mexico, particularly in the northern regions. This shift is driving up demand for skilled labor, especially in manufacturing and logistics sectors.

2. Digital Transformation

As digital transformation accelerates, there’s an increasing demand for tech professionals. Roles in IT, software development, and cybersecurity are seeing higher wages as businesses look to attract skilled talent to drive innovation and growth.

3. Wage Reforms

The Mexican government is implementing initiatives to raise the minimum wage, gradually improving income levels across various industries. These wage reforms are helping to lift the overall compensation landscape and boost workers' purchasing power.

4. Regional Disparities

If you're setting salaries in Mexico, pay close attention to the region. While places like the State of Mexico are experiencing strong job growth, others such as Tabasco, Campeche, and Zacatecas are facing job losses. This uneven growth means that a salary that’s competitive in one state might be above or below market in another.

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Key Takeaways

If you're looking to attract and retain the best talent in Mexico, it’s a good idea to always stay updated on the latest salary trends to provide fair pay. Consider industry benchmarks, location, experience, and cost-of-living factors to make well-informed decisions. You’ll also need to offer benefits that match industry standards, and stay updated on local labor laws to ensure a smooth and successful hiring process.

Look for free resources such as Playroll's salary benchmarking tool and employee cost calculator to easily benchmark your offering across the globe.

Want to simplify the process of hiring in Mexico? Playroll offers unmatched EOR services to make global hiring a breeze – let us handle legal employment, compliance, payroll and benefits management, so you freely explore new markets and focus on team growth. Book a chat with our team to find out how we can help scale your team in Mexico in 2025.