Living Wage Series - Brazil August 2017 - In real per Month

Living wages, Wages in context - Brazil

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 (69% 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 BRL)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 650 915 680 960 170 240
Housing 750 900 750 900 500 715
Transport 240 290 240 290 120 145
Health 150 300 150 300 38 75
Education 165 500 165 500 0 0
Other costs 98 145 99 150 41 59
Total Expenditure 2053 3050 2084 3100 869 1234
Net Living Wage 1208 1794 1158 1722 869 1234
Gross Living Wage 1389 2063 1331 1981 999 1419

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in BRL)

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) 1390 2070
Standard family (two parents + 2 children, 1.8 working) 1330 1980
Two parents and two children, 2 working 1200 1790
Two parents and two children, 1.5 working 1600 2380
Two parents and two children, 1 working 2400 3570
Two parents and three children, 1.7 working 1530 2270
Two parents and four children, 1.7 working 1650 2440
Single-adult without children, 1 working 1000 1420

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in BRL)

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 788 . 880 . 880 . 937 .
Living Wage - Typical Family 1590 2340 1540 2170 1530 2120 1390 2070
Living Wage - Single Adult 1130 1580 1160 1520 1150 1510 1000 1420
Real wage of low-skilled worker 900 1170 925 1200 975 1270 1060 1430
Real wage of medium-skilled worker 1170 1630 1260 1720 1280 1790 1340 1920
Real wage of high-skilled worker 2230 3760 2400 4010 2470 4160 2630 4570

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 BRL

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 101 265 4 7.7
Rice 58 214 2.5 3
Meat (beef, pork, poultry) 180 300 9 13
Oils (soyabean, olive, palm) 31 279 3 4
Sugar (Raw Equivalent) 105 278 3.6 5.6
Maize and products 50 158 3.2 4
Milk - Excluding Butter 269 166 2 2.5
Vegetables, Other 48 12 3 4
Potatoes and products 32 21 2.5 3
Butter, Ghee 6 45 4 5
Groundnuts (Shelled Eq) 24 34 5 7
Pulses, Other and products 0 1 2.6 4
Cassava and products 65 56 2 3
Egg (price per 10 eggs) 16 22 58.3 3.5
Sunflowerseed Oil 1 6 4 5.5
Fish products 20 11 15 20
Beer 121 43 7 10
Sweeteners, Other 1 4 2 3
Beans 29 97 3.6 4.5
Sweet potatoes 2 1 3 4
Bananas 52 33 2.5 3
Soyabeans 7 12 5 7
Yams 1 1 4 5.2
Apples and products 9 5 3.5 4.7
Tomatoes and products 33 7 3.4 4
Onions 12 5 2 3
Oranges, Mandarines 30 9 2 3
Peas 0 1 3 4
Roots, Other 0 0 3 5
Seeds and kernels 0 1 5 8
Wine 3 2 16 24
Pineapples and products 18 7 . .
Cream 0 0 3 8
Olives (including preserved) 1 1 5 9
Honey 0 1 5 10
Citrus, Other 0 0 2.5 3.5
Lemons, Limes and products 8 1 2 3
Tea (including mate) 4 1 4 6
Grapefruit and products 1 0 3 4.1
Coffee and products 6 3 6 7.5

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 

 

Cite this page: © WageIndicator 2017 - WageIndicator.org - Living Wage Series - Brazil August 2017 - In real per Month