Living Wage Series - Cambodia - August 2017 - In KHR, 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 (2.7 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (85% 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 KHR)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 659300 925900 561200 788000 140300 197000
Housing 360000 570700 360000 570700 250000 428000
Transport 40000 80000 40000 80000 20000 40000
Health 40000 100000 40000 100000 10000 25000
Education 80000 150000 80000 150000 0 0
Other costs 59000 91300 54100 84400 21000 34500
Total Expenditure 1238300 1917900 1135300 1773100 441300 724500
Net Living Wage 651737 1009421 630722 985056 441300 724500
Gross Living Wage 710393 1100269 687487 1073711 481017 789705

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in KHR)

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 + 2.7 children, 1.9 working) 710400 1100300
Standard family (two parents + 2 children, 1.8 working) 687500 1073700
Two parents and two children, 2 working 618700 966300
Two parents and two children, 1.5 working 825000 1288500
Two parents and two children, 1 working 1237500 1932700
Two parents and three children, 1.9 working 735800 1135900
Two parents and four children, 1.9 working 820300 1254500
Single-adult without children, 1 working 481000 789700

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in KHR)

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 512000 . 560000 . 560000 . 612000 .
Living Wage - Typical Family 787800 1045000 743700 1075600 771400 1143200 710400 1100300
Living Wage - Single Adult 691700 846900 591800 854300 597400 878500 481000 789700
Real wage of low-skilled worker 983500 1130000 989500 1167000 1109800 1098800 924600 926000
Real wage of medium-skilled worker 848100 1004700 904700 1161600 939100 1235300 1049900 1444000
Real wage of high-skilled worker 1097800 1488500 1305500 1993200 1256500 2005400 1362800 2167600

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 KHR

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 7 22 6400 8000
Rice 376 1308 2000 2500
Meat (beef, pork, poultry) 34 84 20000 30000
Oils (soyabean, olive, palm) 7 59 6000 6500
Sugar (Raw Equivalent) 62 159 2800 3000
Maize and products 29 96 3000 3750
Milk - Excluding Butter 8 5 8000 8000
Vegetables, Other 88 20 4000 5000
Potatoes and products 0 0 4000 4500
Butter, Ghee 2 13 . .
Groundnuts (Shelled Eq) 6 19 7000 8000
Pulses, Other and products 1 2 3000 4000
Cassava and products 60 60 2700 3500
Egg (price per 10 eggs) 3 4 100000 5000
Sunflowerseed Oil 0 0 15000 15000
Fish products 98 73 15000 26000
Beer 77 38 4850 5000
Beans 11 37 4500 6000
Sweet potatoes 8 8 3000 3800
Bananas 25 16 2000 2500
Soyabeans 10 38 5000 6000
Apples and products 1 0 7000 10000
Tomatoes and products 0 0 3500 4500
Onions 0 0 3700 4000
Oranges, Mandarines 10 3 6500 7000
Peas 0 0 5000 6000
Roots, Other 5 5 4000 5000
Seeds and kernels 5 32 . .
Wine 0 0 26700 53300
Pineapples and products 4 1 2000 2500
Cream 0 0 3000 5000
Honey 0 0 50000 50000
Lemons, Limes and products 0 0 3500 5000
Tea (including mate) 0 0 13000 15000
Coffee and products 1 0 15000 18000

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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