Living Wage Series - Nicaragua October 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 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 Cordoba Oro)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 3320 4570 3090 4250 770 1060
Housing 3170 4730 3170 4730 1870 2650
Transport 300 600 300 600 150 300
Health 500 1000 500 1000 125 250
Education 500 800 500 800 0 0
Other costs 390 585 380 570 145 215
Total Expenditure 8180 12285 7940 11950 3060 4475
Net Living Wage 4812 7226 4411 6639 3060 4475
Gross Living Wage 5200 7810 4770 7170 3310 4840

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Cordoba Oro)

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 + 2.3 children, 1.7 working) 5200 7810
Standard family (two parents + 2 children, 1.8 working) 4770 7170
Two parents and two children, 2 working 4290 6460
Two parents and two children, 1.5 working 5720 8610
Two parents and two children, 1 working 8580 12900
Two parents and three children, 1.7 working 5560 8300
Two parents and four children, 1.7 working 6080 9010
Single-adult without children, 1 working 3310 4840

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Cordoba Oro)

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 2705 2850 3014 3014 3187 3480 3624 3624
Living Wage - Single Adult . . . . . . 3310 4840
Living Wage - Typical Family . . . . . . 5200 7810
Real wage of low-skilled worker 2140 3340 5120 7130 4200 5450 4120 5520
Real wage of medium-skilled worker 5260 6830 6110 8040 7140 8600 5890 7370
Real wage of high-skilled worker 7330 11600 8730 13700 9020 13500 8460 12800

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 Cordoba Oro

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 70 100
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 40 50
Sunflowerseed Oil 0 2 41 49
Fish products 11 7 90 125
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 43.5
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

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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