Angola - Living Wage Series, August 2017. In Kwanza per Month

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator calculates Living Wage for around 50 countries based on prices collected within the WageIndicator Cost of Living Survey. The Living Wage calculated by WageIndicator is composed of seven parts: food, housing, transport, health, education, tax and other costs.

WageIndicator presents Living Wages for several household types and working hours to respond to different demands for living wage information: Typical family Living Wage is a baseline estimate that respects the country specific conditions. Family includes two adults and the number of children is given by country specific fertility rate (6.2 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (78% in 2017). Standard family Living Wage is estimated for a family composed of two adults and two children. One parent is employed full-time and the second parent works 4 days a week it means family employment rate is 1.8. Single-adult Living Wage represents an acceptable standard of living for a single individual working full-time with no dependents.

Expenditure and Living Wage calculation (monthly rates in AOA)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 100700 146100 49200 71200 12300 17800
Housing 25000 35000 25000 35000 15000 25000
Transport 400 800 400 800 200 400
Health 6260 15000 6260 15000 1565 3750
Education 22000 21000 22000 21000 0 0
Other costs 7720 10900 5150 7150 1460 2350
Total Expenditure 162080 228800 108010 150150 30525 49300
Net Living Wage 90044 127111 60006 83417 30525 49300
Gross Living Wage 99949 141093 66606 92593 33883 54723

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in AOA)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of common household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 6.2 children, 1.8 working) 100000 141100
Standard family (two parents + 2 children, 1.8 working) 66600 92600
Two parents and two children, 2 working 60000 83300
Two parents and two children, 1.5 working 79900 111100
Two parents and two children, 1 working 119900 166700
Two parents and three children, 1.8 working 74600 104100
Two parents and four children, 1.8 working 82500 115700
Single-adult without children, 1 working 33900 54700

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in AOA)

Living Wages are presented in context with other wage indicators including minimum wage, poverty line, and various prevailing wages of workers. Table shows the development of income levels over two years.

7-12/20151-6/20167-12/20161-6/2017
  from to from to from to from to
Minimum wage 15003 . 15003 . 15003 . 15003 .
Living Wage - Typical Family . . 124900 199100 119100 192200 100000 141100
Living Wage - Single Adult . . 41700 66400 40700 64900 33900 54700
Real wage of low-skilled worker 48100 56400 . . 46600 64900 39400 63900
Real wage of medium-skilled worker 57100 104700 72000 117700 66800 120500 61100 140100
Real wage of high-skilled worker 114300 185500 122400 183700 126100 215800 104500 216000

Note: Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web surveys on work and wages over the last 36 months. Results in the table are rounded.



Living Wage model diet and food prices in AOA

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food itemGrams per dayEnergy (kcal)Price per kilo fromto
Wheat, barley and cereals 100 258 150 230
Rice 19 71 130 200
Meat (beef, pork, poultry) 89 166 600 1000
Oils (soyabean, olive, palm) 21 183 480 700
Sugar (Raw Equivalent) 36 119 250 400
Maize and products 92 293 200 250
Milk - Excluding Butter 29 17 200 245
Vegetables, Other 149 30 300 400
Potatoes and products 48 35 200 200
Butter, Ghee 1 10 300 400
Groundnuts (Shelled Eq) 6 29 230 300
Cassava and products 470 486 200 300
Egg (price per 10 eggs) 3 3 7000 500
Sunflowerseed Oil 1 4 500 900
Fish products 36 22 800 1205
Beer 134 58 200 300
Sweeteners, Other 0 0 165 200
Beans 21 70 250 300
Sweet potatoes 117 112 200 300
Bananas 128 76 200 300
Soyabeans 1 4 200 300
Apples and products 2 1 300 450
Tomatoes and products 11 3 200 300
Onions 1 0 150 200
Oranges, Mandarines 1 0 250 320
Roots, Other 0 0 200 300
Seeds and kernels 0 2 352 450
Wine 11 8 973 1067
Pineapples and products 48 22 . .
Honey 3 8 800 1200
Citrus, Other 30 9 390 500
Tea (including mate) 0 0 150 300
Coffee and products 1 1 250 400

Data sources:

Living Wage FAQ.

WageIndicator Cost of Living Survey

World Bank Databank, Fertility rate – average births per woman in years 2010-2014

ILO, Estimated participation rate in 2017

FAO, Food balance sheet in 2013 

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