The countries with the highest monthly minimum wage in Latin America are Costa Rica with 650 dollars, followed by Chile and Uruguay that equal in 550. These three nations have a better economic situation than many other territories in the region. However, to the same extent that salaries are higher, the cost of living is also higher and the effect it has on the quality of life changes greatly depending on the circumstances of each family.
“The figures do not reflect the real value that this money has in each country. Ultimately, a salary is low or high in relation to the cost of living. With the economic footprints left by the pandemic and the inflationary wave that the world, the region is going through a difficult time marked by high interest rates and low economic growth,” described a BBC report. Another territorial phenomenon is that half of the Latin American population works in the informal sector, that is, they have no employment contract, no social security, or retirement contributions. And much less stability.
Although in 2023, according to statistics, things have been improving compared to the pandemic years, the pockets of the most vulnerable population continue to suffer, especially when most of their income goes to food or rent. A standard that is shared in all Latin American countries.
“With this it is impossible to save. If you save 30,000 colones (US$55) it is already a lot, but for that you would have to stop paying the fixed expenses for the month,” said the Costa Rican Ana Yancy Segura in a journalistic report from the UK portal. The Central American country has the highest minimum wage in Latin America. According to him Statistics National Institutethe average monthly cost of the basic food basket in May was 58,887 colones (US$109) per capita, 25% more than three years ago.
“Here in Chile it is very expensive to eat,” said rosalia roman In dialogue with the British portal: “I wish we could have a good basic diet. I don’t aspire to have any luxury, but I do want to live with dignity.” But in Santiago, renting a house in a peripheral neighborhood can cost more than 60% or 70% of the minimum wage. In Chile, the poverty line per person is It stands at about $280 a month, that is, approximately half a minimum wage.
The cost of the basket of goods and services with which the Consumer Price Index (CPI) is considered confidential information, according to the National Statistics Institute from the Andean country. The information provided by the government is the variation in the prices of the basket, but not the value of the products that comprise it. According to the latest reports, year-on-year inflation in the country dropped to 9%, after reaching 14% last year.
“Half of my salary goes to rent, taxes and service expenses. I manage the rest,” he explained. Valeria Avondet who earns $550 each month to work as a sales operator in a call center in Uruguay. This amount is comparable to the minimum wage of 21,107 Uruguayan pesos set by the Río de la Plata government, which converted to the US currency is one of the highest minimum wages in Latin America.
In Uruguay, consumer prices excluding rent are 94% higher than in Argentina, according to the specialized site numberingIn addition, a total basic basket amounted to 18,759 Uruguayan pesos per capita in December (about US$490 at the current exchange rate) according to official data. “Uruguay is a very expensive country to live in,” the interviewee pointed out, adding: “It has certain good things, like education, which is free, and in other countries that has a cost: if you can’t pay for it, you don’t have access. But it has a cost of living that you don’t have in other countries”.
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