Living Wage Series - Nicaragua August 2017 - In NIO per Month

Living wages, Wages in context - Nicaragua

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 (2.3 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (71% 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 NIO)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 3220 4390 3000 4080 750 1020
Housing 2000 3600 2000 3600 1500 2400
Transport 300 600 300 600 150 300
Health 500 1000 500 1000 125 250
Education 500 1000 500 1000 0 0
Other costs 325 530 315 515 125 200
Total Expenditure 6845 11120 6615 10795 2650 4170
Net Living Wage 4026 6541 3675 5997 2650 4170
Gross Living Wage 4349 7064 3969 6477 2862 4504

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in NIO)

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 + 2.3 children, 1.7 working) 4350 7070
Standard family (two parents + 2 children, 1.8 working) 3970 6480
Two parents and two children, 2 working 3570 5830
Two parents and two children, 1.5 working 4770 7770
Two parents and two children, 1 working 7150 11700
Two parents and three children, 1.7 working 4710 7540
Two parents and four children, 1.7 working 5210 8220
Single-adult without children, 1 working 2860 4510

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in NIO)

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 3014 . 3187 . 3480 . 3624 .
Living Wage - Typical Family . . 4490 7500 4340 7240 4350 7070
Living Wage - Single Adult . . 2980 4370 2930 4600 2860 4510
Real wage of low-skilled worker 4010 5500 4030 4370 4290 5280 4360 5770
Real wage of medium-skilled worker 5990 8590 7500 8630 6400 7960 6000 7630
Real wage of high-skilled worker 9200 15000 9280 13800 8960 13400 8380 13000

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 NIO

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 70 198 24 40
Rice 96 327 14 25
Meat (beef, pork, poultry) 70 111 69.5 100
Oils (soyabean, olive, palm) 21 186 40 41
Sugar (Raw Equivalent) 84 305 20 25
Maize and products 153 522 10 17.6
Milk - Excluding Butter 190 113 20 24
Vegetables, Other 13 4 30 40
Potatoes and products 14 10 20 28
Butter, Ghee 2 19 30 45
Groundnuts (Shelled Eq) 7 31 70 73
Pulses, Other and products 0 0 30 40
Cassava and products 24 22 16 20
Egg (price per 10 eggs) 11 14 800 50
Sunflowerseed Oil 0 2 41 49
Fish products 11 7 87 125
Beer 29 11 50 60.6
Sweeteners, Other 10 16 18 23
Beans 48 161 30 45
Sweet potatoes 0 0 25 32.5
Bananas 1 1 15 20
Soyabeans 0 0 30 50
Yams 0 0 58 70
Apples and products 33 6 38 60
Tomatoes and products 11 2 18 20
Onions 7 3 20 30
Oranges, Mandarines 13 2 15 30
Plantains 10 8 20 30
Peas 0 0 45 50
Roots, Other 11 10 35 42
Seeds and kernels 0 2 90 100
Wine 0 0 200 327
Pineapples and products 20 6 . .
Cream 0 0 40 50
Olives (including preserved) 0 0 250 300
Honey 0 0 50 100
Citrus, Other 0 0 35 60
Lemons, Limes and products 0 0 15 30
Tea (including mate) 0 0 200 220
Grapefruit and products 0 0 25 40
Coffee and products 0 0 100 120

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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