Living Wage Series - Ghana, August 2017 - GHS per Month

Living wages, Wages in context - Ghana

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 (4.2 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (87% 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 GHS)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 1080 1330 700 860 175 215
Housing 200 335 200 335 90 150
Transport 128 240 128 240 64 120
Health 100 150 100 150 25 38
Education 100 400 100 400 0 0
Other costs 80 125 61 99 18 26
Total Expenditure 1688 2580 1289 2084 372 549
Net Living Wage 888 1358 716 1158 372 549
Gross Living Wage 1075 1643 866 1401 450 664

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in GHS)

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 + 4.2 children, 1.9 working) 1080 1650
Standard family (two parents + 2 children, 1.8 working) 865 1400
Two parents and two children, 2 working 780 1260
Two parents and two children, 1.5 working 1040 1680
Two parents and two children, 1 working 1560 2520
Two parents and three children, 1.9 working 940 1470
Two parents and four children, 1.9 working 1060 1620
Single-adult without children, 1 working 450 665

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in GHS)

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 130 . 189 . 189 . 238 .
Living Wage - Typical Family 1390 1910 1330 1870 1100 1630 1080 1650
Living Wage - Single Adult 505 710 520 700 440 640 450 665
Real wage of low-skilled worker 315 545 530 675 465 805 505 780
Real wage of medium-skilled worker 570 935 635 1010 600 1070 675 1080
Real wage of high-skilled worker 1020 1650 1280 2030 1170 2070 1320 2110

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 GHS

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 51 143 4 6
Rice 63 218 5 5
Meat (beef, pork, poultry) 38 43 5.5 9
Oils (soyabean, olive, palm) 14 126 8 8
Sugar (Raw Equivalent) 37 101 4 5
Maize and products 50 159 3 4
Milk - Excluding Butter 18 9 1.8 2.5
Vegetables, Other 19 6 4 6
Potatoes and products 0 0 3 5
Butter, Ghee 0 4 1.5 6
Groundnuts (Shelled Eq) 26 79 2 2.5
Pulses, Other and products 2 5 1 3
Cassava and products 425 461 2 2
Egg (price per 10 eggs) 2 3 100 7
Sunflowerseed Oil 0 1 9 16.4
Fish products 52 42 10 15
Beer 9 4 3.9 8
Sweeteners, Other 2 4 5 5
Beans 16 54 1.4 2.5
Sweet potatoes 10 9 2 5
Bananas 5 4 2 2
Soyabeans 0 0 1.5 1.8
Yams 314 314 4 5
Apples and products 3 1 5 5
Tomatoes and products 51 11 3.5 5
Onions 13 5 3 5
Oranges, Mandarines 45 14 2 5
Plantains 251 223 5 5
Peas 0 0 1.5 2.3
Roots, Other 66 57 2 3
Seeds and kernels 0 0 1.6 2.5
Wine 1 1 6.7 20
Cream 0 0 3 5
Olives (including preserved) 0 1 . .
Citrus, Other 0 0 2 4
Lemons, Limes and products 4 1 2 3.5
Tea (including mate) 0 0 1 2.5
Grapefruit and products 0 0 1.6 1.6
Coffee and products 0 0 1 1.3

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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