Madagascar - Living Wages, August 2017. Per Month in MGA

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 (92% 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 MGA)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 334200 424000 205600 260800 51400 65200
Housing 200000 300000 200000 300000 100000 150000
Transport 48000 96000 48000 96000 24000 48000
Health 30000 60000 30000 60000 7500 15000
Education 40000 80000 40000 80000 0 0
Other costs 32600 48000 26200 39800 9150 13900
Total Expenditure 684800 1008000 549800 836600 192050 292100
Net Living Wage 360421 530526 305444 464778 192050 292100
Gross Living Wage 396463 583579 335989 511256 211255 321310

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in MGA)

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) 396500 583600
Standard family (two parents + 2 children, 1.8 working) 336000 511300
Two parents and two children, 2 working 302400 460100
Two parents and two children, 1.5 working 403200 613500
Two parents and two children, 1 working 604800 920300
Two parents and three children, 1.9 working 349600 524000
Two parents and four children, 1.9 working 380800 563700
Single-adult without children, 1 working 211300 321300

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in MGA)

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 124243 . 133013 . 133013 . 144003 .
Living Wage - Typical Family 386100 558700 402700 565800 386800 587400 396500 583600
Living Wage - Single Adult 230800 310500 225500 318800 222700 330500 211300 321300
Real wage of low-skilled worker 261000 381300 197200 390400 217400 360300 265900 387800
Real wage of medium-skilled worker 342200 469700 347700 467700 345500 472000 324400 465500
Real wage of high-skilled worker 504000 827200 546000 803500 530700 813600 558800 853800

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 MGA

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 26 72 1000 2000
Rice 293 1087 1300 1500
Meat (beef, pork, poultry) 46 89 8000 9000
Oils (soyabean, olive, palm) 6 56 4800 5200
Sugar (Raw Equivalent) 33 73 2400 2800
Maize and products 51 153 1300 1500
Milk - Excluding Butter 71 45 1600 2200
Vegetables, Other 43 10 600 1000
Potatoes and products 16 11 950 1200
Butter, Ghee 1 9 6000 12500
Groundnuts (Shelled Eq) 5 8 1000 2000
Pulses, Other and products 1 4 1500 2350
Cassava and products 355 317 600 1000
Egg (price per 10 eggs) 2 3 70000 3800
Sunflowerseed Oil 0 2 5300 6000
Fish products 13 9 8000 10000
Beer 14 6 4000 4550
Sweeteners, Other 1 1 2600 3000
Beans 9 29 1500 2600
Sweet potatoes 62 60 800 1000
Bananas 40 24 1000 1000
Soyabeans 0 0 2500 4000
Apples and products 1 0 1400 2000
Tomatoes and products 4 1 1200 1500
Onions 1 0 1600 2000
Oranges, Mandarines 11 3 1300 2000
Peas 2 6 1500 2500
Roots, Other 15 14 1500 2000
Seeds and kernels 0 0 9000 10000
Wine 1 1 13300 14000
Cream 0 0 6000 14000
Olives (including preserved) 0 0 15000 15000
Honey 1 2 12000 12000
Citrus, Other 0 0 2500 3000
Lemons, Limes and products 1 0 2000 3000
Tea (including mate) 0 0 5600 6000
Grapefruit and products 1 0 1500 3000
Coffee and products 6 3 4000 7000

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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