At Mexicothe women earn an average of 15% less than the average mena gap that persists in spite of legislative advances and commitments to gender equality, highlights the Mexican Institute for Competitiveness in the research How to close the wage gap? Strategies to eradicate it in Mexico.
This research funded by the British Embassy in Mexico highlights a persistent problem that limits the economic opportunities and, as a result, impacts women's competitiveness and the economic growth of our country.
"Mexico is ranked 33rd out of 146 countries in the Global Gender Gap Index 2024 of the World Economic Forum. The advances in gender equality achieved in the country during the last decade are mainly due to a greater participation of women in the political sphere. However, it faces significant challenges in terms of economic opportunities for women, where their position falls drastically," the report states.
The IMCO The report shows that, in 2005, on average, women in Mexico received labor income 20% less than men, a figure that was reduced to 15 % in 2024.
"This implies that for every 100 pesos a man earns, a woman receives 85 pesos. While men earn 11,490 pesos, women in Mexico earn an average of 9,825 pesos per month," the document states.
Based on this diagnosis, the IMCO proposes seven mechanisms to eradicate the gender pay gap in companies. In the public sector, it is recommended that the measurement of the gender pay gap be standardized. salary gapto move towards salary transparency and structure a National Care System to expand care coverage and ensure access to these services for the entire working population.
Recommendations for the public sector
1. Standardize the measurement of the wage gap.
The first step is to define a nationally standardized methodology for accurately measuring the gender pay gap. This tool should include periodic indicators by gender and hierarchical level, as well as thresholds that trigger compensatory measures when significant differences are detected.
2. Moving toward salary transparency
The opacity of salaries within companies perpetuates inequalities. IMCO proposes that companies, especially those with more than 250 workers, report their salary gaps in financial reports, publish salary ranges on vacancies, and make this information available to their employees. This process should be implemented gradually, starting with companies that are publicly traded or in key sectors.
3. Strengthening the National Care System
The lack of care services is one of the biggest obstacles to women's labor participation. IMCO takes up ILO estimates that indicate that investing in care policies could reduce the wage gap by 4.5% by 2035. To achieve this, it is required:
- Extended paternity and maternity leaves
- Financial benefits for care
- Universal coverage and sustainable financing
- Evaluation of the impact of these policies
Recommendations for the private sector
4. Implement inclusive selection and promotion processes
From the hiring process, women face unequal conditions. IMCO suggests implementing language-neutral vacancies, conducting competency-based interviews, avoiding questions about family plans and salary history, and establishing clear promotion criteria. It also recommends promoting mentoring programs for women.
5. Design objective salary scales
Having a salary range by position helps to reduce discretion in salary allocation. Companies should establish clear criteria, conduct periodic reviews and guarantee equal pay for jobs of equal value. It is also proposed to establish grievance and internal audit mechanisms.
6. Conduct salary audits and obtain certifications
External audits can identify inequalities in a company's salary structure. IMCO recommends adopting gender equality certifications, such as the Mexican Standard on Labor Equality and Non-Discrimination, which, in addition to closing gaps, strengthen corporate reputation and facilitate the attraction of female talent.
7. Institutionalize policies of inclusion and co-responsibility.
To foster a more equitable work culture, it is required:
- Establish paternity leave comparable to maternity leave
- Offer flexible work schemes for the entire workforce.
- Providing care support
- Involve senior management in equality commitments.
An opportunity to move towards labor equality
The IMCO clarifies that reducing the salary gap not only drives the gender equalityThe economic benefits for companies include lower employee turnover, access to diverse talent, greater innovation and productivity. At the macroeconomic level, these advances contribute to more equitable work environments and to the country's growth.
"Despite legislative advances, the wage gap persists in Mexico and it is essential to adopt and strengthen effective mechanisms to eliminate it. The country faces a historic opportunity to accelerate the change towards greater gender equality and close the wage gap in the private sector by taking advantage of the secondary legislation that seeks to establish mechanisms in this regard," states IMCO.
The organization calls for learning from the experience of countries that have advanced in these practices, optimizing resources such as time, budget and human capital.
Stresses that closing the salary gap at Mexico requires a continuous and coordinated commitment, based on solid alliances between the government, the private sector and civil society. These actions will make it possible to move towards a more equitable and competitive economy, with companies where men and women develop on equal terms.
Source: IMCO
