The direct labor minimum wage for manufacturing in Mexico comes out to around $1.90 USD/hour including benefits, based on a 18.5 exchange rate. China’s average is $3.60 USD/hour including benefits, but Mexico has a 48 hour work week compared to China's 40 hour work week. In this sense, labor costs in both countries amount to about $500 USD a month with Mexico adding a day of productivity. Both countries pay overtime when the hours worked exceed the the standard work week hours. Overtime pay is calculated at double the wage for up to nine hours worked beyond the standard work week schedule. However, any employee who works 57 hours or more is paid at three times his or her regular wage. While overtime pay and time-and-a-half are required by Chinese law, many employers may be unwilling to adhere to this legal requirement. Mexican Labor Laws are extremely strict. Learn the 7 key manufacturing differentiators between Mexico and China