Annual Raise for Maid and Gardener

I know an annual raise is not mandatory but what is a customary percentage for an annual raise?
5-10-15% Please comments.

I usually go by the increase in the cost of living but keep in mind that the official inflation rate from the govt. is low by design.

I think performance is just as much a factor as inflation.

Let's be sensible and use the best guideline we have..that is what the government uses. Depending on your lifestyle etc., of course, different people will have experienced different increases their COL
I assume that you are paying above the minimum wage? With the turmoil that is resonating NOB it would seem that "WE" in Mexico are not in compliance and just paying slave wages. So maybe when you think of the first number double it

I’m not sure what the first number you mentioned is. I was asking about a percentage rate or flat fee raise which would be a peso amount per year. 20-30-40-50 peso raise. Just need some comments please.

sm1mex wrote:I’m not sure what the first number you mentioned is. I was asking about a percentage rate or flat fee raise which would be a peso amount per year. 20-30-40-50 peso raise. Just need some comments please.

In the U.S. we were lucky to get a 2 or 3 percent raise, many years none at all. I feel that here, a 10% raise is more fair. A Mexican friend says they do not expect annual raises and that 10% is too much. After five years my housekeeper and gardeners are now at the high end of pay for that work. In December I gave them the mandated payouts. I added a “bonus,” thanking them for all they had done for me but kept their pay the same. I also some weeks give them 50 or 100 pesos extra if there was more work that day. I pay them for sick days too.

sm1mex wrote:I know an annual raise is not mandatory but what is a customary percentage for an annual raise?
5-10-15%  Please comments.

There is no "customary percentage" that I have ever heard of.  
Just the annual minimum wage increase set forth by the government.

lakeside7 wrote:With the turmoil that is resonating  NOB it would seem that "WE" in Mexico are not in compliance and just paying slave wages. 

A totally ridiculous and untrue statement.

Our maid and gardener are primarily here to keep our gardens and rental units in order. We pay them an hourly rate. Our gardener gets $65 per hour and our maid gets $65 per hour. If they manage to finish early we pay them the same rate and they can leave early. This happens quite often as they have an incentive to work fast. They usually get about $100 pesos per hour based on actual hours worked. We give them a raise every year and pay for any sick days or family days. They both seem really happy with our arrangement. Since we expect to take a big hit on our rentals this year we probably won't give a raise which we will explain to them. We also pay them 6 weeks pay at Christmas bonus time. They have both been with us for 7 years.

They are already open. Don't know where July 1 comes from? Hotels opened the same time as restaurants.

In a way, even if you don't give an actual hourly raise, you still do give them an annual raise, in that the yearly mandated vacation pay is based on the number of years they have worked for you. As is the severance pay if you decide not to employ them anymore.
I would tend to give a raise, not on an annual basis, but according to what the going rate was for my area and also as to how efficient and thorough they were in their work. Also according to inflation. If gas suddenly goes up in price, it costs your Mexican employees just as much to gas up their vehicle as it does you, so I'd give a bit of a raise accordingly.
What I have always been cautious about is not acting in a way that creates expectations. "We really appreciate your work, the fact that you always call if you won't be able to make it, and realize the price of xx has gone up lately, so we're going to now pay you $xx per hour", regardless of whether they have worked for you for a year or 4 years, is a better approach than "It's a new year, therefore you get a raise", IMO.

mudgirl wrote:In a way, even if you don't give an actual hourly raise, you still do give them an annual raise, in that the yearly mandated vacation pay is based on the number of years they have worked for you. As is the severance pay if you decide not to employ them anymore.
I would tend to give a raise, not on an annual basis, but according to what the going rate was for my area and also as to how efficient and thorough they were in their work. Also according to inflation. If gas suddenly goes up in price, it costs your Mexican employees just as much to gas up their vehicle as it does you, so I'd give a bit of a raise accordingly.
What I have always been cautious about is not acting in a way that creates expectations. "We really appreciate your work, the fact that you always call if you won't be able to make it, and realize the price of xx has gone up lately, so we're going to now pay you $xx per hour", regardless of whether they have worked for you for a year or 4 years, is a better approach than "It's a new year, therefore you get a raise", IMO.

Frankly, regardless of what the Government mandated rules are..the wage scale is what the maid/gardener says it is..... and is based on what their friends earn at another place of employment. But I agree...... for a maid to be getting more than a tradesperson seems crazy..But who is to say who is getting over or under paid?

Right, so my neighbour who is paying $100p/hour to her maid, who is causing an uproar with another neighbourhood maid who gets $50/hr, is what? I'll tell you one thing: it is not what the maid says it should be. It's what the market says it should be.

I think I have had good comments. Thank you all.

MexicoPete wrote:Someone posted on TOB that hotels will be allowed to open July 1st. I hope for your sake that this comes true.

Hotel Balneario SJC and Cosalá Grand Hotel have been open several weeks with reduced (50%) capacity.