Latin American Talent – VivaGlobal

How to Determine Pay for Latin American Remote Workers: Why Salary Platforms Get It Wrong

Figuring out what to pay remote workers in Latin America is anything but straightforward. Glassdoor shows you one number. Indeed shows another. LinkedIn suggests something completely different. Then you check a few blog posts and salary guides, and suddenly you’re staring at ranges that vary by $1,500 or more for the same role. None of it matches. And nobody seems to agree on what’s actually accurate. Here’s the problem. Global salary platforms aggregate data from vastly different employment contexts. They mix local Colombian companies paying in pesos with U.S. tech firms offering USD salaries. They don’t separate entry-level from senior roles. And they definitely don’t account for the specialized skills you actually need. If you’re a U.S. small business owner looking to hire elite talent from Latin America at 70% lower cost than domestic payroll, you need a better system. This guide shows you exactly how to determine competitive, accurate pay for remote LATAM professionals using methods that actually work. Why Glassdoor, Indeed, and LinkedIn Get LATAM Salaries Wrong Most U.S. business owners make the same mistake when researching Latin American remote worker compensation. They pull up Glassdoor, check a few numbers, and assume they’ve done their homework. The reality is far messier. These platforms collect salary data primarily through anonymous self-reporting. Workers log into the site and enter their compensation details. Sometimes companies share information too. The platform then aggregates this data and presents an average. Sounds straightforward. But here’s what goes wrong. The U.S. Company Bias Problem Most salary reports on global platforms come from employees at large, U.S.-headquartered companies. Think Microsoft, Dell, or major law firms with Colombian offices. These workers earn significantly more than the local market average. When you only have a few hundred reports, and most come from the top tier of the pay scale, your “average” isn’t average at all. It’s inflated. Local startups rarely report. Freelancers almost never do. The data skews high. No Distinction Between Employment Types None of these platforms properly separate different types of work arrangements. A Colombian developer working for a local Medellín startup gets lumped together with another developer working remotely for a Silicon Valley company. The developer at the local startup might earn $1,200 monthly, paid in pesos. The developer working remotely for the U.S. tech firm could command $3,500 monthly in USD. The platform shows you $2,350 as the “average” when nobody actually earns that amount. This matters tremendously for your hiring strategy. You’re competing for talent in a specific market segment. The blended average tells you nothing useful. Numbers You Should Know Salary Platform Reality Check: The Local vs. Remote Salary Gap Nobody Talks About You’re interviewing two marketing managers from Mexico City. Both have five years of experience. Similar portfolios. Comparable skills. One currently works for a local Mexican agency and earns $1,800 monthly. The other works remotely for a U.S. software company at $3,500 monthly. This isn’t about experience or qualifications. It’s about market exposure. Prior Employment History Drives Expectations Workers with U.S. company experience command premium rates for a simple reason. They’ve already proven they can operate in your business environment. They understand U.S. work culture, communication styles, and time zone expectations. LATAM professionals with prior U.S. remote work experience typically command 30-60% higher salaries. You’re paying for reduced risk and faster onboarding. Local-only workers might be just as talented. But you’ll need to invest more time in training and cultural adaptation. Some hiring managers prefer this approach. They find untapped talent at lower rates and develop them into strong performers. Both strategies work. Your choice depends on your timeline and capacity for onboarding. Regional Cost Variations Matter More Than You Think Glassdoor shows a national average for Colombia. But living in Medellín costs 40% more than living in Cali. Your $2,000 offer might be generous in one city and barely competitive in another. Most platforms don’t break down pay by city. They give you country-level data that masks huge internal variance. This creates two problems. First, you might underpay talent in expensive regions and lose them to competitors. Second, you might overpay in smaller cities when you could stretch your budget further. Bootstrapping your growth? Scale smarter with elite LATAM professionals at 70% lower salary cost. No compromise on quality, compliance, or speed. Book a free 15-minute strategy call. A/B Testing Your Way to Market-Accurate Pay The most reliable method for determining competitive LATAM pay has nothing to do with salary surveys. It’s empirical, direct, and produces real data. Post the same role at different pay rates. Track what happens. How Market Testing Actually Works Start with a reasonable baseline estimate. Maybe you’ve gathered some informal data or checked a few sources. Post your role publicly at that rate for one week. Count how many applications you receive. More importantly, evaluate the quality. Are these candidates actually qualified? Do they meet your minimum requirements? If you get 50 applications but only three have the skills you need, your pay is too low. If you get five highly qualified candidates within 48 hours, you might be overpaying. Adjust and repost. Track results again. After two or three iterations, you’ll find the sweet spot. This approach takes time. But it gives you precise, current market data for your specific requirements. No survey can match that accuracy. Quality Signals to Watch Application volume alone doesn’t tell the full story. You need to evaluate candidate quality systematically. Look at English proficiency levels. Check technical skill demonstrations. Review prior work experience with U.S. companies. Assess time zone flexibility. Strong candidates at lower pay rates suggest you’ve found good market positioning. Weak candidates at higher rates mean your competition is offering more, or your job posting needs work. Dynamic Markets Require Ongoing Calibration LATAM labor markets for specialized roles can shift 15-25% annually. What worked six months ago might not work today. Some roles see surging demand. Legal positions like paralegals with U.S. law experience have become harder to fill recently. Limited qualified candidates mean

Latin American Talent

The True Cost of Hiring LATAM Employees: Complete Budget Planning Guide

Hunter Miranda / October 19, 2025

Most business owners think they understand the cost of hiring LATAM talent. They see the salary numbers and assume they’ll save 70% on their total employment expenses. Here’s what actually happens: the equipment shipments cost more than expected, compliance gets complicated, currency fluctuations impact your budget, and the management time adds up faster than you planned. Without proper planning, those promised savings can turn into budget surprises. When you understand the real costs upfront and plan accordingly, LATAM hiring delivers significant cost savings, access to skilled talent, and the ability to scale your team without typical US hiring challenges. You just need to know what you’re actually paying for. What 70% Payroll Savings Actually Means Let’s get specific about what those savings look like in real dollars. When we say 70% savings, we’re talking about the salary portion of your employment costs. A marketing manager who costs you $75,000 in the US might cost $25,000 in LATAM. That’s $50,000 back in your pocket per year, per employee. But that’s just base salary. Your total employment costs include a lot more — and understanding the full picture helps you budget correctly and set realistic expectations. Here’s how the math actually works: if you’re currently paying $75,000 for a marketing manager in the US, your true cost is probably closer to $90,000-$100,000 when you add benefits, taxes, equipment, and office space. With LATAM hiring, that same role costs you roughly $35,000-$40,000 all-in. That’s still 60% savings on your total employment expenses. Real Salary Benchmarks for Common Roles Understanding current market rates helps you budget accurately and offer competitive compensation that attracts quality candidates. Marketing Roles Sales Positions Technical Roles Administrative and Support These ranges vary by experience level, English proficiency, and specific country. Mexico and Colombia tend to be at the higher end, while Argentina and Peru often offer the deepest discounts. Why US Employment Costs So Much More To understand your LATAM savings, you need to see what US employees actually cost beyond their salary. When you hire someone in the US for $75,000, your true cost hits $90,000-$100,000 per year. Here’s why: Payroll Taxes and Benefits US employers pay 7.65% in Social Security and Medicare taxes on every employee’s salary. That’s $5,737 on a $75,000 salary. You’re also required to provide healthcare benefits, which average $15,000-$20,000 per employee annually. Add unemployment insurance, workers’ compensation, and other mandatory costs, and you’re looking at $20,000-$30,000 in additional expenses per employee. LATAM Employment Through EOR When you hire LATAM talent through an Employer of Record, those US payroll taxes disappear completely. You don’t pay Social Security, Medicare, or US unemployment taxes. Healthcare is handled locally at much lower costs. The EOR fee typically runs $400-$800 monthly per employee, but that replaces $20,000+ in US employment costs. Equipment and Setup Costs Most LATAM professionals need equipment to work effectively. Budget $600-$800 for a quality laptop that meets their needs. Shipping costs add another $150-$300, and you’ll face import duties of 15-25% on electronics in most LATAM countries. Total equipment cost per employee typically runs $1,000-$1,500 for the initial setup. Communication and Collaboration Tools Remote teams need proper tools to work effectively, whether they’re in LATAM or anywhere else. Budget $50-$100 per employee monthly for communication platforms, project management software, VPN access, and other collaboration tools. These are standard costs for any remote team, not specific to LATAM hiring. Legal and Compliance Requirements This is where many companies get surprised by unexpected costs. LATAM countries have specific employment laws, and misclassification can result in hefty penalties. If you hire employees directly, you’ll need legal entities in each country. Entity setup costs range from $3,000-$15,000 depending on the country, plus $800-$3,000 monthly for ongoing compliance and accounting. Most companies use Employer of Record services instead, which handle all legal compliance for $400-$800 per employee monthly. While this adds to your costs, it eliminates legal risks and setup complexity. Ready to build your LATAM team without the legal headaches? Scale smarter with elite LATAM professionals at 70% lower salary cost—no compromise on quality, compliance, or speed. Book a free 15-minute strategy call. Currency Risk and International Payments Currency fluctuations can impact your budget, especially with longer-term employment relationships. The Argentine peso, for example, has been particularly volatile, while Mexican peso and Colombian peso tend to be more stable. You’ll pay fees for international transfers — typically $15-$50 per transfer plus 1-3% in currency conversion fees. Using services like Wise or Deel can reduce these costs significantly compared to traditional banks. Many companies hedge against currency risk by offering USD-denominated contracts or using forward contracts for larger teams. This adds complexity but provides budget predictability. EOR Services vs. Direct Hiring Costs Most companies face a choice between setting up legal entities in each country or using Employer of Record services. The math is pretty straightforward. EOR Service Costs EOR providers typically charge $400-$800 per employee monthly. These fees cover legal employment, payroll processing, benefits administration, and compliance management. The exact cost depends on the country and level of service you need. Direct Entity Costs Setting up your own entities is far more complex and expensive than most business owners realize. Initial legal setup costs range from $15,000-$50,000 per country when you factor in attorney fees, entity registration, and compliance requirements. Each LATAM country has completely different processes and regulations, some taking 6-12 months to complete. You’ll need local legal counsel in each country since the requirements vary dramatically. Brazil requires different documentation than Mexico, which is entirely different from Colombia’s process. Attorney fees alone can run $10,000-$20,000 per country just for the setup. Banking setup adds another layer of complexity and cost. Opening corporate bank accounts requires in-person visits in many countries, additional legal documentation, and ongoing monthly fees. Expect $2,000-$5,000 in banking setup costs per country, plus ongoing conversion fees on every transaction. Ongoing operational costs include $3,000-$8,000 monthly per country for accounting, payroll processing, compliance management, and legal updates. Many countries require additional expenses based