Let’s talk about money! One of the most frequently asked questions is how much tip is normal and when you should or should not tip in Mexico. In addition, we take a closer look at Mexican salaries, we explain what groceries cost on average, corruption is discussed and many more things. In this article you can read everything you need to know about money and costs in Mexico.
Let’s start with the inevitable: tip, propina in Spanish. Because when do you tip and what is an appropriate amount? First things first: gratuity is optional. However, it is normal to tip in Mexico for certain things, including in the hospitality industry. But.. mind you: Some restaurants have invented a handy trick where they determine the tip for you in advance and shamelessly add it to the final amount. If this happens to you, it will be a difficult story and you will actually be too late. This trick mainly happens in tourist places. Even though this is actually not allowed under Mexican law, this challenge is almost pointless. You can avoid this half-scam by simply eating at more local restaurants, often just a block away; this tricky concept does not exist there.
However, tipping is generally customary in Mexico, given the low wages of the staff. A waitress receives an average of 10 euros per day as basic wage and in some cases nothing at all; then tip counts as salary. Therefore, always leave at least 10% if everything was just fine. In case you have a very good experience, 15% is even more appropriate. Is the service to cry? Then you can exceptionally omit the tip.
Meanwhile, American tourism has left its mark on tipping; since society in the US is so tip-oriented, the gringos also like to throw money in Mexico and that doesn’t always have positive consequences; this is kind of where the ‘mandatory’ tipping comes from in touristy restaurants. To keep the balance and therefore I would never give absurdly high tips.
Hotels, taxis, refueling & tours
In addition to catering, there are more appropriate moments to tip. It is quite normal to leave a tip for the chambermaid of your accommodation. The amount depends on how luxurious your hotel is. If you sleep in a good hotel or resort, you can leave about 50-60 pesos every other day, so a few euros. In many cases you see this; a neat room or just that little extra, but above all a happy chambermaid. Are you sleeping in a super chic accommodation? Then it may be a bit more. Do you arrive at a hotel and the concierge drags your bags to the room? Then you can give about 25 pesos per suitcase.
Tours & excursions
Did you have a nice day with a tour and did the staff do their best during an excursion? Then leaving a tip to, for example, the captain / guide / driver is quite normal. If you have a guide who goes with you all day and does his best, then 5 to 10 euros per person is quite normal. For example, you can give a driver 5 euros extra for the whole family. Tours are priced quite high, but trust me; the ones who make your day run smoothly and safely are also the ones who get paid the least. If you can spare it, please try to give an extra: it is greatly appreciated and for a Mexican it can make all the difference.
Taxis
There is quite a bit of confusion about taxis. Let’s be clear: you do NOT have to tip taxi drivers. Taxis know very well how the game works and already calculate an extra for themselves, especially for tourists who have no idea of current prices and therefore quickly pay too much. However, you can tip if you have bags with you and the driver helps you load them; 10 pesos (50 cents) per suitcase is fine.
Refueling
Refueling is always fun! Where we in the Netherlands have had no pump service for years and simply roll up our sleeves ourselves, almost every gas station in Mexico has more gas station attendants than there are pumps. And yes, they want tips too. In fact, 10 pesos per fill-up is fine, but if they do something extra for you, such as checking tire pressure (you can ask for that, they will measure it and refill it) or clean your window, then you can give something extra. The pump service lives on tips and generally does not receive a daily wage.
Salary!
The salary of a Mexican is on average significantly lower than that of a Dutchman, which will surprise no one. Everything depends on which industry and even which state, because the price differences are also large between the different states. We take the Yucatan Peninsula as an example, the most popular holiday destination among the Dutch and also one of the most expensive areas of Mexico. The daily wage of a waitress has already been discussed; the average monthly wageMexican salaried employee is somewhere between 8,000 and 13,000 pesos per month, converted we are talking about 400 euros to 650 euros. An entertainer of an all inclusive resort earns an average of 9,000 pesos per month (450 euros) and works 6 days a week . A working day is approximately 10 hours. A manager in the same hotel sometimes earns as much as 18,000-25,000 pesos (900-1250 euros) and often works fewer hours. But, and there are a lot of ‘but’s’ in this story: tip, commission & other extras also have an influence. For example, a Mexican friend of mine at one of the most expensive beach clubs in Playa del Carmen sometimes earned between 200 and 400 euros in tips.. per day!
In Mexico you notice that connection and education are of great importance; workers from poorer backgrounds will settle for less and will generally not consider growth opportunities simply because they don’t know any better. Mexicans with good education and a large network, on the other hand, find their way easily and will sooner earn above average. A good contact can make all the difference in this. The inequality in this is unprecedented and you will notice if you stay here for a longer period of time: network is key. Nothing surprising in itself, but definitely more visible than we are used to in the Netherlands. Here, network is already an important factor at ‘lower’ levels, and at a higher level it is even more important than in the Netherlands. Many Mexicans therefore get a job ‘through the grapevine’, regardless of experience and education.
Also not unimportant, and certainly keep this in mind when you want to withdraw money: Almost every Mexican in paid employment gets paid every 2 weeks: this is called quincena . These salary payments are always around the 1st and 15th of the month. Now you may be thinking: what does that have to do with me as a traveler? Well.. here we go! During quincena, all hell breaks loose and every Mexican rushes to the bank to withdraw the salary. Result? Empty ATMs around payday, overcrowded supermarkets and worst case scenario: like quincenafalls on Friday or Saturday. Then a large part of the salary can be spent on drinks and parties. For me an absolute no-go to dive into the local pub. Now that you know that the Mexican salaries of salaried employees are quite low, you may also understand the culture and attitude better: in general, Mexicans live day by day and there is a lot of money thrown around pay day: whether it be the weekly groceries goes, the rent (generally 1 quincenareserved for rent & fixed costs) but also for fun.. or fiesta. Saving is a challenge for many Mexicans; rather they spend it on what they have today, because no one knows what tomorrow will look like. You can find all kinds of things about that, but one thing is certain: Mexicans live in the now and they do it with dedication. For me a great and interesting lesson, which I have mixed feelings about.
Rent & live
Just like the salaries, the costs of renting a house are very different. It goes without saying that the geographical location, size and facilities are decisive factors. Take Playa del Carmen: a popular seaside resort with about half a million inhabitants. The apartments near the beach easily cost 1000-2000 euros or even more per month. But who then lives here? Well.. especially foreigners with a well-filled wallet. The ‘ordinary’ Mexican lives in a local neighborhood and these prices vary greatly; a small studio without luxury, located outside the center, based on 1 person costs an average of 150-200 euros. A two-bedroom house with a garden in a good, local, upper-middle-class neighborhood costs an average of 600-700 euros per month in rent. So there is no clear answer to but maybe these examples will help to give you an idea. A couple with a good income rents a house for an average of 400 euros; 10-15 minutes drive from the beach and the tourist center. A single with a good job pays an average of 250 euros for a nice apartment, driving the same distance. Do you remember the salaries..?!
Groceries
Although Mexico is seen as cheap by Western travelers, this is not always the case. Yes, alcohol, tobacco.. These costs are significantly lower, simply due to the low taxation. In the supermarket, however, you will soon notice that one product has a price comparable to that in the Netherlands, while another type of product is cheaper or more expensive. The basics: A kilo of bananas costs an average of 1 dollar, a kilo of apples 3-4 dollars, a box with 12 eggs about 2 euros, a can of red bull 3 euros, a six pack of beer (corona) 4-5 dollars, half a kilo of chicken fillet 5 -6 dollars, a kilo of sugar 3 dollars.. But do you buy an average bottle of rum or tequila? That is about 5 dollar.
Corruption
Since the salary of an average low-ranking police officer is about $400, you probably now understand better why some officers are quite corrupt and want to earn some extra money. They prefer to make a deal on the spot with unsuspecting tourists, who are then at least a few tens or even hundreds of euros lighter, but relieved because they can continue without ‘problems’. Problems that probably weren’t even there. Tip: are you sure you didn’t do anything wrong and don’t want to cooperate? Keep pushing to go to the police station and give it your all, don’t be intimidated. Is tension running high? Write down the patrol number, ask for the name of the officer and possibly film the situation. Want to get rid of it quickly (and easily)? The only way is to pay. You are not alone and for many Mexicans this is (unfortunately) the most normal thing in the world. But.. Of course this type of police is certainly not stupid and they know all too well that tourists are fearful. They make good use of that, or rather: abuse of power. Where a Mexican gets away with 500 pesos, it can cost a traveler 2000 pesos. So try to negotiate if you find yourself in such a situation. Also wise: do not keep all your cash together in your wallet, because there is a good chance that they will check what you have with you and if they see a thick pile of pesos, it is immediately can it cost a traveler 2000 pesos. So try to negotiate if you find yourself in such a situation. Also wise: do not keep all your cash together in your wallet, because there is a good chance that they will check what you have with you and if they see a thick pile of pesos, it is immediately can it cost a traveler 2000 pesos. So try to negotiate if you find yourself in such a situation. Also wise: do not keep all your cash together in your wallet, because there is a good chance that they will check what you have with you and if they see a thick pile of pesos, it is immediatelycaching, checkout! It is better to avoid this altogether and if you are pulled over in a rental car, for example, make sure you have 500-1000 pesos in your glove compartment and don’t let it get any further than that. Small note; I write this with mixed feelings, haha.. But in practice it is just like that.
But.. Yes, another but. Not every agent is like that and corruption is being tackled better and better, for example with dash cams. Of course, not every agent is like that! In any case, don’t be frightened by the stories, but use your common sense. You can feel very well what the situation is like, despite the language barrier. Be nice and try to avoid arguments and you will get the most done. But again: the chance is very small that you end up in such a situation.
Quincena.. Payday!
Also not unimportant, and certainly keep this in mind when you want to withdraw money: Almost every Mexican in paid employment gets paid every 2 weeks: this is called quincena . These salary payments are always around the 1st and 15th of the month. Now you may be thinking: what does that have to do with me as a traveler? Well.. here we go! During quincena, all hell breaks loose and every Mexican rushes to the bank to withdraw the salary. Result? Empty ATMs around payday, overcrowded supermarkets and worst case scenario: like quincenafalls on Friday or Saturday. Then a large part of the salary can be spent on drinks and parties. For me an absolute no-go to dive into the local pub. Now that you know that the Mexican salaries of salaried employees are quite low, you may also understand the culture and attitude better: in general, Mexicans live day by day and there is a lot of money thrown around pay day: whether it be the weekly groceries goes, the rent (generally 1 quincenareserved for rent & fixed costs) but also for fun.. or fiesta. Saving is a challenge for many Mexicans; rather they spend it on what they have today, because no one knows what tomorrow will look like. You can find all kinds of things about that, but one thing is certain: Mexicans live in the now and they do it with dedication. For me a great and interesting lesson, which I have mixed feelings about.