Madagascar - Living Wages, October 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 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 Malagasy Ariary)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 347500 448000 213800 275700 53500 68900
Housing 200000 300000 200000 300000 100000 136800
Transport 40000 56000 40000 56000 20000 28000
Health 30000 60000 30000 60000 7500 15000
Education 40000 80000 40000 80000 0 0
Other costs 32900 47200 26200 38600 9050 12400
Total Expenditure 690400 991200 550000 810300 190050 261100
Net Living Wage 363368 521684 305556 450167 190050 261100
Gross Living Wage 399700 573900 336100 495200 209100 287200

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Malagasy Ariary)

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 + 4.5 children, 1.9 working) 399700 573900
Standard family (two parents + 2 children, 1.8 working) 336100 495200
Two parents and two children, 2 working 302500 445700
Two parents and two children, 1.5 working 403300 594200
Two parents and two children, 1 working 605000 891300
Two parents and three children, 1.9 working 351000 511000
Two parents and four children, 1.9 working 383400 552900
Single-adult without children, 1 working 209100 287200

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Malagasy Ariary)

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 108019 124243 124243 124243 133013 133013 144003 144003
Living Wage - Single Adult . . . . . . 209100 287200
Living Wage - Typical Family . . . . . . 399700 573900
Real wage of low-skilled worker 105800 197600 210300 326000 183700 306700 230700 375500
Real wage of medium-skilled worker 263500 398600 332300 457800 335300 461000 324600 469100
Real wage of high-skilled worker 466500 765600 515200 786200 522600 791300 511200 815000

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 Malagasy Ariary

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 3500 3750
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

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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