Living wage Series - Chile - October 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 uses prices from the Cost of Living Survey to calculate Living Wage for 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Chilean Peso)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 180200 242800 189700 255500 47400 63900
Housing 280000 372800 280000 372800 159200 206100
Transport 51000 60000 51000 60000 25500 30000
Health 30000 50000 30000 50000 7500 12500
Education 35000 100000 35000 100000 0 0
Other costs 28800 41300 29300 41900 12000 15600
Total Expenditure 605000 866900 615000 880200 251600 328100
Net Living Wage 355882 509941 341667 489000 251600 328100
Gross Living Wage 434200 622100 416800 596600 307000 400300

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Chilean Peso)

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 most common family household compositions and under different assumptions about working hours.

  from to
Typical family (two parents + 1.8 children, 1.7 working) 434200 622100
Standard family (two parents + 2 children, 1.8 working) 416800 596600
Two parents and two children, 2 working 375200 536900
Two parents and two children, 1.5 working 500200 715900
Two parents and two children, 1 working 750300 1073900
Two parents and three children, 1.7 working 477100 679800
Two parents and four children, 1.7 working 512800 728000
Single-adult without children, 1 working 307000 400300

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Chilean Peso)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 210000 225000 241000 241000 250000 257000 264000 270000
Living Wage - Single Adult 283700 391300 279400 378300 297400 406100 307000 400300
Living Wage - Typical Family 405500 606100 405100 597300 428200 633300 434200 622100
Real wage of low-skilled worker 280900 355700 297700 396400 304900 385700 289000 375500
Real wage of medium-skilled worker 404900 542200 402200 567500 413500 559700 408500 571700
Real wage of high-skilled worker 768300 1115600 784600 1201400 780300 1146200 764400 1161900

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.


Food basket and food prices in Chilean Peso

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 1170 1330
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 0 550 800
Seeds and kernels 0 0 2000 4000
Wine 34 23 2670 4000
Pineapples and products 6 3 . .
Cream 0 0 1300 2600
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

WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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