Is Mexico Labor cheaper than China?

15 Jul 2014


An assembly-line worker in Mexico with one year experience will cost the employer approximately $500 USD, which is comparable to the cost of a worker in China who has a similar skill set. The difference, however, lies not in the monthly cost, but in the hours worked during the month.

Mexico has a 48-hour work week compared to China, which has a 40-hour work week. Overtime pay is due to employees in both countries when the hours worked exceed the the standard work week hours. Labor laws in Mexico are strict.

Overtime pay is calculated at double the wage for up to nine hours worked beyond the standard work week threshold. . However, any employee who works 57 hours or more is paid at three times his or her regular wage.

While overtime pay and time-and-a-half are required by Chinese law, many employers may be unwilling to adhere to this legal requirement.

Without overtime, it is likely that an assembly-line worker costs the employer less in Mexico than in China.