Narayan AmmachchiCosta Rica, Chile and Uruguay already have the highest minimum wages in all of Latin America, yet salaries in these countries are set to climb even higher, pushed by rising living costs.
A large majority of workers in these countries are spending over 70% of their income on food and house rent, with the remaining 30% covering other basic expenses such as electricity, water and transport.
Many families are finding no money left in their pockets to pay for education and healthcare services.
In Costa Rica, the average monthly cost of the basic food basket hit US$109 earlier in May, 25% more than three years ago, according to the country’s National Institute of Statistics.
The story is similar in Chile. Food prices continue to climb in the country, accounting for 70% of monthly expenses among average Chilean families.
The poverty line in Chile stands at a monthly income of US$280 per person, about half of the national minimum wage. Inflation dropped to 9% from 14% last year, although rents in Santiago remain pricey for minimum wage earners.
Consumer costs in Uruguay, excluding rent, are 94% higher than in Argentina. According to official figures, the total value of the basic basket as of December 2022 was 18,759 Uruguayan pesos (US$490).
In contrast to Chile, primary education is free in Uruguay, but other basic necessities are prohibitively expensive.
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