The tool was revealed during WageIndicator’s fourth webinar on gig work, titled Gig Work: Grip on Pay, which revolves around payment in the world of platforms, held online on 25 March 2022.
The Minimum Living Tariff tool takes into account pensioen and certain work-related factors, such as disability insurance and clothes/car/petrol. It draws on data concerning assumed effective working days. It then also takes into account non-working days due to reasons such as no work available, sickness, training admin, holiday and other factors.
These criteria, based on money and time, are factored into the tool to calculate a living income, per hour and year, for a gig worker. In a sector where workers often make less than the minimum wage, and are unprotected in case of disability or sickness, the tool is aimed at giving gig workers more autonomy and access to more information regarding their ability to earn a living wage. The example below can be used in any country. The starting point is either the Statutory Minimum wage per hour or the WageIndicator Living Wage for that country. Example below for The Netherlands (40 hours a week, Minimum Wage per hour 9.96 Euro)
| WageIndicator | Gig workers | ||
| what is the time you need to earn a living income per hour and per year? | |||
| Minimum income per hour / plus additional occupation related costs | Euro per hr. excl. of VAT | ||
| 1 | gross minimum hourly wage 40 hr. working week | 9.96 | |
| 2 | pension 20% of bare wages | 2.15 | |
| 3 | occupation related costs - in this concept for now on zero | 0 | |
| 4 | disability insurance - in this concept for now on zero | 0 | |
| 5 | total hourly bare wage | 12.11 | |
| assumed annual income : 52 x 40 hrs. x 12.11 | 25188 | ||
| assumed working days 52x5 | 260 | ||
| assumed effective working days 260 - 82 = 178 | 178 | ||
| assumed minimum tariff per hr. in Euro excl. of VAT January 2022/ 25188 :178 : 8 = hourly tariff |
17.68 |
||
| 82 days off | days | ||
| 6 | holidays/national holidays | 25 | |
| 7 | no work/no income risk | 26 | |
| 8 | sickness | 8 | |
| 9 | commuting during working hrs. - in this concept for now on zero | 0 | |
| 10 | train to stay employable | 9 | |
| 11 | acquisition and communication | 11 | |
| 12 | administration | 3 | |
| 13 | waiting time, differs per occupation - in this concept for now on zero | 0 | |
| 14 | total | 82 | |
Criteria in money and time: |
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| in money | |||
| Living wage, typical family, lowest (WageIndicator data base). In case minimum wage is higher than the living wage the minimum wage is taken | |||
| Pension 20% - assumption: 40 working yrs. yield 15 pension yrs. | |||
| Occupation-related costs - relevant national data collection by WageIndicator - for example on zero | |||
| Disability insurance - relevant national data collection WageIndicator - for example on zero | |||
| In time | |||
| Holidays - minimum (national) holiday(s) | |||
| Unemployment risk 10% - assumption 10% (as the unemployment risk is higher) | |||
| Sick days - average sick days assumed | |||
| Commuting time - sometimes to be seen as considered to be working time - for example on zero | |||
| Training to improve employability - minimum days needed per year | |||
| Aquisition for ongoing new jobs - anticipate cancelled jobs and find new ones | |||
| Administration, approximation: average 5 minutes per day. 5x260 days yield 1.300 minutes per annum : 480 minutes (8 hr. working day)= 2.7 days , rounded to 3 days | |||
| Waiting time, differing per occupation - for example on zero | |||
| Mar-22 | |||