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Open Roads Forum  >  RVing in Mexico and South America

 > Inflation in Mexico

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charlestonsouthern

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Posted: 12/01/21 03:34pm Link  |  Quote  |  Print  |  Notify Moderator

Tallyho69, in 2002 (the first time I visited Mexico without using a cruise ship), it was approximately 10 to one. It seems to take almost twice the number of pesos to buy the same goods purchased in 2002. Really, for a good comparison of those years, other North American countries also would need to be examined.

Talleyho69

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Posted: 12/01/21 06:35pm Link  |  Quote  |  Print  |  Notify Moderator

You are likely correct. We remember some of our very first trips to Mexico in the early 1980's when we changed money and became millionaires.

How times have changed! We now live here permanently, in our dream home in Zihuatanejo, and as a bonus find the living expenses to be less than they were in our former Southern California beach enclave.

qtla9111

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Posted: 12/02/21 05:22am Link  |  Quote  |  Print  |  Notify Moderator

Talleyho69 wrote:

You are likely correct. We remember some of our very first trips to Mexico in the early 1980s when we changed money and became millionaires.

How times have changed! We now live here permanently, in our dream home in Zihuatanejo, and as a bonus find the living expenses to be less than they were in our former Southern California beach enclave.


Agreed, for those that earn dollars. Those of us who earned pesos feel the sting every day when we buy gasoline, gas LP, and groceries that continue to go up in price.


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moisheh

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Posted: 12/02/21 07:55am Link  |  Quote  |  Print  |  Notify Moderator

Not to worry-minimum wage is rising to 172.87 pesos. Of course almost no on ever works for that wage. However it is not unusual to be paid 1500 pesos for 5.5 days of work. A worker also gets social security that includes, health care(which sometimes has no value), pension and workers comp. Workers also get Aguinaldo(sp). This is a hefty xmas bonus based on your wages. Some Mexican employers lay off all their workers in December to avoid the bonus. Welcome to the real Mexico.


https://mexiconewsdaily.com/news/minimum-wage/

* This post was edited 12/02/21 08:07am by moisheh *

Talleyho69

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Posted: 12/02/21 01:06pm Link  |  Quote  |  Print  |  Notify Moderator

The aguinaldo is the equivalent of 2 weeks pay for an employee who has worked all 12 months for you and it is to be paid before December 20. It is not a bonus.

If an employee is terminated, laid off, whatever, they are to be paid the aguinaldo for the time that they worked. We just did this for a maid who moved to Tijuana, and the new one will receive hers for the time she has worked this year.

When an employee is terminated, laid off, whatever, they almost always have to be paid off. https://mexlaw.com/considerations-regarding-hiring-and-firing-employees-in-mexico/

This is not to say that people are doing what they are legally required to do, but that is true in any country. In our area, it seems as though people are paying what they are supposed to pay.

playaboy

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Posted: 12/03/21 05:12am Link  |  Quote  |  Print  |  Notify Moderator

Tally is correct, aguinaldo is not a xmas bonus. It is part of their regular pay. Consider that when you do want to give your employee their xmas bonus along with their aguinaldo.

qtla9111

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Posted: 12/03/21 06:10am Link  |  Quote  |  Print  |  Notify Moderator

It became a mandatory monetary benefit in 1970, with an amendment to the Federal Labor Law, which stipulated that the bonus should be equivalent to at least 15 days of salary and must be delivered before December 20. In the constitutional article, it is referred to as a bonus although mandatory.

Full-time teachers in the state of Nuevo Leon receive an average of 50,000 pesos, current and retired. Keep in mind the 2 weeks is a minimum and many company employees receive much more.

If you read the link below the history goes back hundreds of years and for different reasons including the influence of the church.

https://www.milenio.com/negocios/breve-historia-de-cual-es-el-origen-del-aguinaldo

moisheh

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Posted: 12/03/21 06:27am Link  |  Quote  |  Print  |  Notify Moderator

Unfortunately law and reality are often different. Even some Government agencies cheat the employees out of the Aguinaldo In rural areas of Sonora contractors often cheat the system! Some also do not offer Seguro Social. Or they pay the employees minimum wage on the books and the rest in cash. Thus the benefits of Seguro are almost worthless. Small Mexican employers often treat their employees like slaves. This is wrong but the above happens. Yet we know people that had decent jobs at the Ford plant. However Ford does not put up with nonsense. If your Aunt in Sinaloa is ill you cannot take time off to vist her. So the employee quits or is fired and ends up as a clerk in Oxxo. There is more than one Mexico. Rural areas are much different than big cities. Of course there is also more than one USA or Canada.

qtla9111

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Posted: 12/03/21 06:35am Link  |  Quote  |  Print  |  Notify Moderator

Contracted employees, self-employed, are not eligible for aguinaldos by law. The years I worked as an independent consultant, via honorarios, was never included. When a person, such as a maid works for more than one person, they aren't eligible either as you have to be fully employed by one employer. Similar to a person who works less than 40 hour weeks in the U.S. is generally not eligible for any company benefits.

BTW, an employee of OXXO (where I worked in corporate for a year) posted the truth about his pay at the store he worked at. His salary was so good, and his benefits, that many people posted, "I have a degree and work in a large corporation. I would be better off working in an OXXO". Of course, the guy who posted on TikTok is a store leader.

His salary is 20,000 pesos a month, IMSS, INFONAVIT, aguinaldo, and 750 pesos additional in despensa or food coupons.

The years I worked in the U.S., employees received a turkey. Big deal.

charlestonsouthern

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Posted: 12/04/21 01:23am Link  |  Quote  |  Print  |  Notify Moderator

Talleyho69, when I was speaking earlier of inflation for Mexican citizens, the following is what I meant:

1 Mexican peso in 2002 for the same goods and services will require 2.17 pesos in 2021 for the same goods and services.

1 Canadian dollar in 2002 for the same goods and services will require $1.41 Canadian dollars in 2021 for the same goods and services.

1 US dollar in 2002 for the same goods and services will require $1.54 US dollars in 2021 for the same goods and services.

So, the winner (which currency holds its value better than their neighboring countries) is Canada.

If we keep just printing currency to keep up with inflation (with no value to back it up), we might as well use it to wallpaper our bathrooms!!

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