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Tables and Figures for: Measuring the Cost of Salaried Labor in Latin America and the Caribbean

By Social Protection and Labor Markets Division (VPS/SCL/SPL)

This dataset presents new data documenting the cost of salaried labor in 20 Latin American and Caribbean countries. It gathers data on the three main costs associated with hiring salaried labor: (i) minimum wages and other monetary benefits, (ii) mandated contributions for social insurance and other benefits, and (iii) job security provisions.

Two new indicators

The data underpin two new indicators. The first is the average non-wage cost of salaried labor (NWC), which answers the question: for the average wage, what additional share of wages must be satisfied by workers and employers to fulfill all the legally mandated non-wage costs of a legal salaried relationship. The second combines these non-wage costs with the nominal restriction that legal wages cannot be lower than the minimum wage, calculating the annual dollar value of paying a worker the minimum wage plus all mandated non-wage costs as a share of GDP per worker — the minimum cost of salaried labor (MCSL).

Key facts

  • The average non-wage cost of salaried labor (NWC) for the region is 49% of wages.
  • There is large dispersion across countries: Argentina, Brazil and Peru have costs around 70% of wages, while Trinidad and Tobago, Jamaica and Chile have costs below 40% of wages.
  • Mandatory contributions are the most important component of the NWC at 27.3% of wages, followed by additional benefits at 13.8% and job security provisions at 8.4%.
  • On average, mandated contributions from employers amount to 17.5% of average annual wages, versus 9.8% from employees.
  • The minimum cost of salaried labor (MCSL) averages 39% of GDP per worker, with even larger variation across countries — below 15% of GDP per worker in Mexico, Trinidad and Tobago and the Dominican Republic, but 95% of GDP per capita in Honduras.
  • Despite having below-average NWC, the five poorest countries in the sample present the highest MCSL, due to high minimum wages relative to GDP per worker.

The dataset is associated with the IDB publication "Measuring the Cost of Salaried Labor in Latin America and the Caribbean."

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Metadata & use

Identifier https://doi.org/10.60966/08k5i4rc
License Creative Commons Attribution–NonCommercial–NoDerivs 3.0 IGO
Related Knowledge Product
Citation

Alaimo, Veronica, et al. (2017). Tables and Figures for: Measuring the Cost of Salaried Labor in Latin America and the Caribbean. IDB Open Data. https://doi.org/10.60966/08k5i4rc
Published date 2017-07-18
Modified date 2026-08-26
Tags/Keywords Minimum Wages · Non-Wage Cost · Payroll Taxes · Severance Payments
Language
  1. English
Temporal coverage 2013-2013
Country
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Guatemala
Honduras
Jamaica
Mexico
Nicaragua
Panama
Paraguay
Peru
Trinidad & Tobago
Uruguay
Venezuela
Region Latin America and the Caribbean
Publisher
Inter-American Development Bank
Author
Alaimo, Veronica
Gualavisi, Melany
Villa, Juan Miguel
Bosch, Mariano
Data collection type Observational Data
Data structure Semistructured Data
Data notes

What does this dataset document?

It documents the cost of salaried labor in 20 Latin American and Caribbean countries, gathering data on minimum wages and other monetary benefits, mandated social-insurance contributions, and job security provisions.

What are the two new indicators?

The average non-wage cost of salaried labor (NWC), the additional share of wages needed to cover all legally mandated non-wage costs; and the minimum cost of salaried labor (MCSL), the annual cost of paying the minimum wage plus all mandated non-wage costs as a share of GDP per worker.

What is the average non-wage cost of salaried labor in the region?

The average non-wage cost of salaried labor (NWC) for the region is 49% of wages.

How much do non-wage costs vary across countries?

There is large dispersion: Argentina, Brazil and Peru have costs around 70% of wages, while Trinidad and Tobago, Jamaica and Chile have costs below 40% of wages.

What are the components of the non-wage cost?

Mandatory contributions are the most important component at 27.3% of wages, followed by additional benefits at 13.8% and job security provisions at 8.4%. Of the mandated contributions, employers contribute 17.5% of average annual wages versus 9.8% from employees.

What is the minimum cost of salaried labor (MCSL)?

The MCSL averages 39% of GDP per worker, with large variation: below 15% in Mexico, Trinidad and Tobago and the Dominican Republic, but 95% of GDP per capita in Honduras.

Why do the poorest countries have the highest minimum cost of salaried labor?

Despite having below-average non-wage costs, the five poorest countries in the sample present the highest MCSL, due to high minimum wages relative to GDP per worker.

In what format is the data available?

The dataset is available as an XLSX file (Labor-Costs-Annex-1).

How do I cite this dataset?

Alaimo, Veronica, et al. (2017). Tables and Figures for: Measuring the Cost of Salaried Labor in Latin America and the Caribbean. IDB Open Data. https://doi.org/10.60966/08k5i4rc

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