What Is the Average Household Income in Mexico?

Mexico’s economic landscape is dynamic, with its household income serving as a fundamental indicator of the population’s economic well-being and development. Understanding the average household income provides insight into the financial capacity of families, reflecting their ability to cover daily expenses, save, and invest. This information is crucial for analyzing economic trends and evaluating the effectiveness of various policies aimed at improving living standards across the nation.

Current Average Household Income

In 2024, the average current monthly income per household in Mexico was 25,955 pesos, according to the National Survey of Household Income and Expenditure (ENIGH) conducted by the National Institute of Statistics and Geography (INEGI). This figure represents a real increase of 10.6 percent compared to 2022, indicating a sustained recovery in income levels since 2020.

The average, calculated as the arithmetic mean, provides a single numerical representation of income across all households. While useful, this average does not fully capture the diverse economic situations experienced by different families throughout the country. The ENIGH 2024 data reveals that the average current quarterly income per household was 77,864 pesos.

This survey provides detailed information on the income and expenditure patterns of Mexican households. Its consistent methodology allows for historical comparisons, showing trends in household income over time.

Defining and Measuring Household Income

Household income in the context of Mexican statistics refers to the total monetary and non-monetary resources received by all members of a household over a specific period. This comprehensive definition ensures that all regular inflows contributing to a household’s economic capacity are accounted for. The primary source of this data is the National Survey of Household Income and Expenditure (ENIGH).

Various sources contribute to this measured income, including salaries and wages from employment, profits from business activities, and monetary transfers. Transfers encompass a range of receipts such as remittances from abroad, pensions, scholarships, and social benefits from government programs. The value of estimated rent for owner-occupied housing is also included, along with income derived from property rentals or investments.

Data collection involves extensive household surveys, where information is gathered directly from families across different regions. This approach allows INEGI to construct a comprehensive understanding of how households generate and receive their economic resources.

Key Determinants of Income Levels

Several factors significantly influence the variation in household income levels across Mexico. Geographic location plays a substantial role, with urban areas generally exhibiting higher average incomes compared to rural regions due to differing economic opportunities and wage structures. For instance, cities like Mexico City and Querétaro often show higher spending capacities, reflecting elevated income levels.

Educational attainment of household members directly correlates with earning potential, as higher levels of education typically lead to better-paying jobs. Individuals with advanced degrees often access specialized professions that command greater remuneration.

The primary economic sector of employment also dictates income levels. Households engaged in manufacturing and service industries tend to have different income profiles than those primarily dependent on agriculture. Household composition, such as the number of working adults and dependents, further impacts the total income available to a family.

Income Distribution Across Households

While the average household income provides a general figure, it does not fully convey how income is distributed among the population, which can be quite uneven. To illustrate these disparities, INEGI often divides households into income deciles, representing ten equal groups based on their income levels.

For instance, in 2024, the wealthiest 10 percent of households (the tenth decile) earned an average of 78,698 pesos monthly, while the poorest 10 percent (the first decile) had an average income of just 5,598 pesos. This difference highlights a significant income gap, with the richest decile earning approximately 14 times more than the poorest.

The Gini coefficient is a widely used measure to quantify income inequality, ranging from 0 (perfect equality) to 1 (perfect inequality). A higher Gini coefficient indicates greater income disparity within a population. This statistical tool provides a more nuanced view beyond a simple average, revealing the concentration of income among different segments of society. Analyzing income distribution through deciles and the Gini coefficient helps understand that a substantial portion of households may earn considerably less or more than the reported national average, reflecting varying economic realities.

Purchasing Power and Cost of Living

Understanding household income in Mexico also requires considering its purchasing power, which refers to what that income can actually buy in terms of goods and services. The cost of living varies across different regions of the country, influencing the real value of the reported average income. Essential expenditures, such as the basic food basket, housing, and transportation, consume a significant portion of household budgets.

In 2024, food, beverages, and tobacco constituted the largest proportion of household spending, accounting for 37.7 percent of the total expenses. Transportation and communication expenses followed, representing 19.5 percent of the budget. These spending patterns illustrate how average incomes translate into daily living conditions and the affordability of necessities. For instance, households in the lowest income deciles spend a larger percentage of their income on food, highlighting the practical implications of income levels on a family’s ability to cover basic needs.