Living Tariff

Living Tariff Tool for Self - Employed and Gig Workers

Digital labour platforms contribute to the creation of employment and income generation for millions of people in the world. Many of them earn part or their entire income through platform-based work. On one hand, the platforms provide flexibility and low entry barriers and on other hand gig work is usually seen as work without rights. 

One of the main challenge gig workers deal with is being paid less than the minimum wage. Many also face economic insecurity and are at risk of losing earnings due to technical challenges with digital platforms. Therefore, defining living wages (tariff) for gig workers, including those working beyond platform mediated work become important. A Living Wage is paid when a worker receives remuneration that is sufficient to afford a decent standard of living for the worker and her or his family in their location and time. 

Gig workers may find it hard to assess their wages accurately due to lack of knowledge and tools that offer reliable information. Gig workers, especially those in the location-based sectors find is hard to assess the hidden and indirect costs such as long waiting times for taxi drivers, last minute cancellations or non-payment by clients for additional tasks. This is where the concept of Living Tariff comes in.

Since 2014, WageIndicator has developed its Living Wage and Living Income, which includes a database on Cost of Living in 186 countries (and growing). A Living Wage assumes a ‘normal’ working week, which implies avoiding excessive overtime hours, or taking on more than one job. To support gig workers, particularly those offering low skilled – low complexity location-based and online services, GIZ has partnered with WageIndicator Foundation to develop a Living Tariff Tool based on their concept of Living Tariff. 

About the Living Tariff Tool 

This tool builds on WageIndicator’s method to calculate the Living Tariff using its Living Wage database and factor in variable costs (additional allowances like laptop and high-speed internet for cloud-workers; mobile phone and additional data for location-based workers; expenses for work equipment like car/motorbikes and gas for riders / couriers; and waiting and aquisition time in between paid gigs). 

The tool is availeble in Indonesia, India, Kenya, Pakistan, The Netherlands and South Africa. On demand WageIndicator can develop the Living Tariff tool in an other country. The Living Tariff data is for sale.