Latin America is the name given to a group of mostly Spanish-speaking countries (except Brazil, where Portuguese is the official language) from North America, Central America, and South America.
Since some of these countries, such as Puerto Rico, are also considered part of United States territory, we cannot define a single average Latin America salary. Additionally, differing local currencies and fluctuating exchange rates make a single universal figure difficult to determine.
Instead, in the article, we’ll look at the average salary in Latin America for some countries based on their economic development and ease of outsourcing. We’ll also consider various components of this average salary figure, such as median salary, salary range, and minimum salary laws.
What is the average salary in Latin America (By country)
In alphabetical order, the following countries make up the Latin America region:
- Argentina.
- Bolivia.
- Brazil.
- Chile.
- Colombia.
- Costa Rica.
- Cuba.
- The Dominican Republic.
- Ecuador.
- El Salvador.
- Guatemala.
- Honduras.
- Mexico.
- Nicaragua.
- Panama.
- Paraguay.
- Peru.
- Puerto Rico.
- Uruguay.
- Venezuela.
We’ll look at the average income figures from just a few key countries as they’re best poised for development and outsourcing (salary date from Salary Explorer).
(Click on the link to go to a specific section)
Table of Contents
1. Argentina
Argentina, or the Argentine Republic, is the world’s largest Spanish-speaking country.
It’s a developing Latin American country and ranks 46th on the Human Development Index (HDI). Buenos Aires, the capital city, is comparable to Lithuania in Eastern Europe.
A) Average salary
An employee in Argentina can earn an average monthly salary of 45,200 ARS (Argentine Peso).
According to the June 2023 exchange rate, that is equivalent to 184 USD (US Dollars) per month.
B) Salary range
Argentinian salaries can range between 33,000 ARS per month as the minimum salary to 202,000 ARS/month (highest average salary, the actual maximum can be higher).
The range depends on various factors such as:
- Location.
- Job type.
- Education level.
- Years of experience.
C) Median salary
The median salary in Argentina is 38,500 ARS/month, meaning half the population earns less than this amount while the other half has an income higher than 38,500 ARS/month.
Read more about the average salary in Argentina here.
D) Minimum wage
The Argentinian minimum wage was increased to 69,500 ARS per month in March 2023.
2. Bolivia
Bolivia and its capital, La Paz, are located in western-central South America. While the country ranks fairly high on the HDI (#107), it remains one of the poorest in the region.
According to the World Bank, Bolivia has witnessed steady economic growth on par with many developed nations, barring the pandemic dip.
A) Average salary
A working person in Bolivia in 2023 typically earns around 8,530 BOB (Bolivian Boliviano) per month, about 1236 USD/month.
B) Salary range
Bolivian salaries can range from 2,160 BOB/month to 38,100 BOB/month. These are lower and higher averages, actual numbers may differ.
C) Median salary
The median salary in Bolivia is 7,800 BOB/month. This means about 50% of the population earns less than 7,800 BOB/month while the other half earns more.
Check out more information about the average salary in Bolivia here.
D) Minimum wage
Bolivia offers its workers a government-mandated minimum wage of 2,250 BOB/month.
3. Brazil
Brazil is the largest country in both South America and Latin America. While the actual capital city is Brasilia, Sao Paulo is the most populous one.
The World Bank characterizes Brazil as an upper-middle-income country, making it an attractive outsourcing destination for many US-based and other foreign companies.
A) Average salary
In 2023, a Brazilian employee can expect to have an income of an average of 8,560 BRL (Brazilian Real) per month. This comes to around 1755 USD/month.
B) Salary range
Brazilian salaries can range between 2,170 BRL/month (minimum salary) to 38,200 BRL/month (highest average, actual salary can be higher).
C) Median salary
The median Brazilian salary is 7,450/month. Here, half (50%) of the population earns more than 7,450/month and 50% earn less.
Learn more about the average salary in Brazil here.
D) Minimum wage
The minimum wage in Brazil is 1,320 BRL (271 USD) per month.
4. Chile
A developing yet high-income country, Chile is a founding member of the United Nations and ranks the highest (#43) in the HDI among all Latin and Caribbean countries.
A) Average salary
A Chilean employee typically has an average income of 1,870,000 CLP (Chilean Peso) per month, around 2375 USD/month in June 2023.
B) Salary range
Chilean salaries can range anywhere from 473,00 CLP/month to 8,340,000 CLP/month (maximum average, actual salary can be higher).
C) Median salary
The median Chilean salary is 1,690,000 CLP/month, which means half the population earns less than this amount while the other half earns more.
D) Minimum wage
The minimum wage in Chile is 410,000 CLP (521 USD) per month.
5. Colombia
Colombia is the third-largest economy in South America. Bogota, the capital district of Colombia, is comparable to Oman in the Middle East in terms of the HDI.
In the fourth quarter of 2021, Colombia witnessed a higher GDP growth rate (4.3%) compared to developed countries like the United Kingdom (1.0%). Colombia’s overall 2021 growth (7.61%) was higher than the global average of 5.5%.
A) Average salary
The average salary for a Colombian employee in 2023 is 4,690,000 COP (Colombian Peso) per month, equivalent to about 1123 USD/month.
B) Salary range
Colombian salaries can range from 1,190,000 COP/month on the lower end to 20,900,000 on the higher end of the spectrum.
C) Median salary
The median salary in Colombia is 4,040,000 COP per month. This number divides the population in half, with 50% earning more and 50% earning less than this figure.
Dive deeper into the average salary in Colombia figures.
D) Minimum wage
The minimum wage in Colombia is 1,160,000 CLP (278 USD) per month.
6. Costa Rica
The Republic of Costa Rica in Central America has Free Trade Zones and attractive tax incentives that allow foreign manufacturing companies to operate in the country at a low cost.
A) Average salary
A full-time Costa Rica employee in 2023 typically earns around 2,360,000 CRC/month (4389 USD/month).
B) Salary range
Costa Rican salaries can range between 597,000 CRC (Costa Rican Colon) a month to 10,500,000 CRC/month.
C) Median salary
The Costa Rican median salary is 2,140,000 CRC per month, meaning half the population earns more than this amount while the other half earns less than 2,140,000 CRC/month.
Read more about the average salary in Costa Rica in this detailed article.
D) Minimum wage
Costa Rica doesn’t have a fixed minimum monthly or hourly wage. Instead, the government has established varying net salaries for different skill levels and job titles.
These figures are adjusted once a year, typically in January.
Currently, the minimum national average wage varies from 11,739 CRC per day (21.83 USD) for all workers to 15,333 CRC/day (28.52 USD) for specialized workers. Technical workers can earn the highest salary of 752,220 CRC (1,399 USD) per month.
7. Ecuador
Ecuador in northwestern South America has witnessed major economic growth from 2006 to 2016, with an annual per capita GDP growth of 1.5%.
A) Average salary
In 2023, a working person in Ecuador earns around 1,360 USD/month.
B) Salary range
Ecuadorian salaries can range from 340 USD/month to 6,080 USD/month.
C) Median salary
The median salary in Ecuador is 1,260 USD/month, meaning half the Ecuadorian population earns more than this amount while the other half earns less than 1,260 USD/month.
D) Minimum wage
The minimum wage in Ecuador is 450 USD per month.
8. Mexico
Sandwiched between the United States and the Pacific Ocean, Mexico is the 12th largest country in terms of GDP PPP (Purchasing Power Parity).
The capital, Mexico City, is the most populous city in North America.
A) Average salary
A Mexican employee typically earns around 33,200 MXN (Mexican Peso) per month, about 1923 USD/month per the June 2023 exchange rate.
B) Salary range
Mexican salaries can range from 8,410 MXN/month to 148,000 MXN/month.
C) Median salary
The median salary in Mexico is 29,200 MXN/month. So 50% of the population earns less than this, and the other half (50%) earns more than 29,200 MXN/month.
Check out our detailed breakdown of the average salary in Mexico.
D) Minimum wage
In 2023, Mexico raised its minimum wage to 312.41 MXN (18.09 USD) per day along the northern border, the home of many foreign companies and their factories.
In the rest of the country, the minimum wage is set at 207.44 MXN (12.01 USD) per day.
9. Puerto Rico
Puerto Rico is a Caribbean island and an unincorporated territory of the United States. It’s described as a high-income, developed nation.
The capital city, San Juan, has the second-highest cost of living in Latin America and the Caribbean, following Nassau in the Bahamas.
A) Average salary
The average yearly salary for 2023 in Puerto Rico is 20,100 USD or 1,680 USD per month.
B) Salary range
Puerto Rico salaries can range from 5,090 USD/year (minimum salary) to 89,900 USD/year (highest average salary).
C) Median salary
The median annual salary in Puerto Rico is 17,700 USD, meaning half of the population earns less than this while the other half earns more.
D) Minimum wage
In July 2023, Puerto Rico increased its hourly wage to 9.50 USD, which is higher than the Federal Minimum Wage.
10. Uruguay
The South American country, Uruguay, is a developing, high-income country and ranks first when it comes to the prosperity of its citizens and the size of the middle class.
A) Average salary
An Uruguayan employee in 2023 typically earns around 33,00 UYU (Uruguayan Peso) per month or 848 USD/month.
B) Salary range
Salaries in Uruguay can range from 8,340 UYU/month to 147,000 UYU/month.
C) Median salary
The median salary in Uruguay is 29,600 UYU/month, with 50% of the population earning less than this and 50% earning more.
E) Minimum wage
The minimum wage in Uruguay is set at 21,106 UYU per month, equivalent to 542 USD/month.
We’ll now briefly explore the top industries and tasks you can outsource to Latin America.
Top 3 industries in Latin America for outsourcing
Latin America has witnessed great economic growth and stability over the past decade.
This, coupled with the low wages (compared to other Western countries), makes the region an attractive outsourcing destination for many US, UK, and EU-based companies.
Here are a few tasks you can outsource to this developing region.
1. Software development
Latin America is a quickly growing outsourcing destination for software development outsourcing thanks to the growing tech talent in the region.
2. Accounting
Due to the countries’ proximity to the Western world, accounting and financial outsourcing are easy to shift to Latin American countries.
3. Customer support
As Latin Americans are typically bilingual in Spanish and English, they can help you provide better customer support in these languages and more.
Wrapping up
As you can see, the average salary figure in Latin America is as varied as the countries themselves.
Each country has its own average salary figure due to different currencies and economies.
You can use the information above to make an informed decision about where to outsource your business for maximum cost savings.