Living wage Series - Chile - August 2017 - In CLP per Month

WageIndicator Living Wage Series - Wages in Context - Living Wages / in 2017

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 (1.8 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (68% 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 CLP)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 184000 240300 193600 253200 48400 63300
Housing 193700 235700 193700 235700 150000 200000
Transport 40000 60000 40000 60000 20000 30000
Health 30000 50000 30000 50000 7500 12500
Education 40000 100000 40000 100000 0 0
Other costs 24400 34300 24900 35000 11300 15300
Total Expenditure 512100 720300 522200 733900 237200 321100
Net Living Wage 301235 423706 290111 407722 237200 321100
Gross Living Wage 367507 516921 353936 497421 289384 391742

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in CLP)

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 + 1.8 children, 1.7 working) 367500 516900
Standard family (two parents + 2 children, 1.8 working) 353900 497400
Two parents and two children, 2 working 318500 447700
Two parents and two children, 1.5 working 424700 596900
Two parents and two children, 1 working 637100 895400
Two parents and three children, 1.7 working 411200 574300
Two parents and four children, 1.7 working 447700 622100
Single-adult without children, 1 working 289400 391700

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in CLP)

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 241000 . 250000 . 257000 . 264000 .
Living Wage - Typical Family 354300 500400 346400 492100 370600 515000 367500 516900
Living Wage - Single Adult 271400 374800 272700 374700 300300 385500 289400 391700
Real wage of low-skilled worker 279300 445000 299800 438200 315500 435400 299100 380500
Real wage of medium-skilled worker 388700 562000 412900 571100 410900 557600 415600 586100
Real wage of high-skilled worker 784900 1223700 792200 1181900 778500 1144100 779100 1189900

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 CLP

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 218 626 1000 1400
Rice 18 62 650 800
Meat (beef, pork, poultry) 171 327 3000 4000
Oils (soyabean, olive, palm) 12 100 1000 1200
Sugar (Raw Equivalent) 89 313 600 750
Maize and products 42 143 1200 1500
Milk - Excluding Butter 230 110 650 700
Vegetables, Other 93 29 800 1200
Potatoes and products 122 87 500 600
Butter, Ghee 9 66 1200 1800
Groundnuts (Shelled Eq) 5 19 2000 3000
Pulses, Other and products 4 15 1000 1500
Cassava and products 0 0 550 1000
Egg (price per 10 eggs) 20 26 23300 1300
Sunflowerseed Oil 3 25 1 1
Fish products 26 15 3000 4000
Beer 86 31 1600 2420
Sweeteners, Other 6 16 600 800
Beans 3 11 1200 1800
Sweet potatoes 2 1 500 600
Bananas 19 12 600 700
Soyabeans 0 0 1200 1980
Apples and products 22 11 500 780
Tomatoes and products 20 4 700 800
Onions 29 12 500 650
Oranges, Mandarines 11 2 600 800
Plantains 1 1 600 700
Peas 1 2 950 1400
Roots, Other 0 0 520 750
Seeds and kernels 0 0 2000 4000
Wine 34 23 2670 4000
Pineapples and products 6 3 . .
Cream 0 0 1220 2500
Olives (including preserved) 4 4 2000 3000
Honey 0 1 2500 3500
Citrus, Other 0 0 700 800
Lemons, Limes and products 13 2 700 1000
Tea (including mate) 3 1 1500 2500
Grapefruit and products 0 0 700 900
Coffee and products 1 1 2700 3500

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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