Ethiopia - Living Wages August 2017. Per Month in ETB

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 (4.5 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (86% 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 ETB)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 2820 3970 1740 2440 435 610
Housing 2000 3000 2000 3000 1500 2400
Transport 500 1000 500 1000 250 500
Health 245 500 245 500 61 125
Education 375 600 375 600 0 0
Other costs 295 455 245 375 110 180
Total Expenditure 6235 9525 5105 7915 2356 3815
Net Living Wage 3282 5013 2836 4397 2356 3815
Gross Living Wage 4332 6617 3744 5804 3110 5036

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in ETB)

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 + 4.5 children, 1.9 working) 4330 6620
Standard family (two parents + 2 children, 1.8 working) 3750 5810
Two parents and two children, 2 working 3370 5230
Two parents and two children, 1.5 working 4490 6970
Two parents and two children, 1 working 6740 10500
Two parents and three children, 1.9 working 3870 5950
Two parents and four children, 1.9 working 4180 6390
Single-adult without children, 1 working 3110 5040

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in ETB)

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 420 . 420 . 420 . 420 .
Living Wage - Typical Family . . . . . . 4330 6620
Living Wage - Single Adult . . . . . . 3110 5040
Real wage of low-skilled worker . . 1990 3110 2140 4160 2080 3420
Real wage of medium-skilled worker . . 2750 4440 3170 5450 2850 4920
Real wage of high-skilled worker . . 4360 6420 4690 7250 4400 6570

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 ETB

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 290 940 8 14
Rice 6 22 16 20
Meat (beef, pork, poultry) 23 41 150 180
Oils (soyabean, olive, palm) 8 69 . .
Sugar (Raw Equivalent) 17 59 12 16
Maize and products 115 397 7 8
Milk - Excluding Butter 121 72 13 20
Vegetables, Other 42 15 15 20
Potatoes and products 18 12 7 12
Butter, Ghee 1 10 75 75
Groundnuts (Shelled Eq) 3 14 . .
Pulses, Other and products 28 96 35 45
Egg (price per 10 eggs) 1 1 20 1.7
Fish products 1 0 12 80
Beer 24 12 32 50
Sweeteners, Other 0 0 16 16
Beans 6 20 40 50
Sweet potatoes 39 36 8 9
Bananas 8 5 4 12
Soyabeans 1 4 49 85
Yams 28 28 . .
Apples and products 0 0 56 80
Tomatoes and products 1 0 12 15
Onions 6 2 9 12
Oranges, Mandarines 1 0 25 25
Peas 10 34 28 50
Roots, Other 136 204 . .
Seeds and kernels 0 2 25 45
Wine 0 0 100 106.7
Cream 0 0 3 12
Olives (including preserved) 0 2 . .
Honey 1 4 . .
Lemons, Limes and products 0 0 25 30
Grapefruit and products 0 0 85 85
Coffee and products 2 1 75 80

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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