Living Wage Series - Pakistan

August 2017 - In PKR, per Month

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 (3.7 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (59% 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 PKR)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 16500 19500 11560 13680 2890 3420
Housing 12000 13000 12000 13000 8000 8670
Transport 1200 2000 1200 2000 600 1000
Health 650 1000 650 1000 163 250
Education 500 1000 500 1000 0 0
Other costs 1550 1830 1300 1540 585 665
Total Expenditure 32400 38330 27210 32220 12238 14005
Net Living Wage 20250 23956 15117 17900 12238 14005
Gross Living Wage 21870 25873 16326 19332 13217 15125

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in PKR)

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 + 3.7 children, 1.6 working) 21900 25900
Standard family (two parents + 2 children, 1.8 working) 16300 19300
Two parents and two children, 2 working 14700 17400
Two parents and two children, 1.5 working 19600 23200
Two parents and two children, 1 working 29400 34800
Two parents and three children, 1.6 working 20400 24200
Two parents and four children, 1.6 working 22500 26600
Single-adult without children, 1 working 13200 15100

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in PKR)

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 9000 . 10000 . 10000 . 14000 .
Living Wage - Typical Family 20500 27000 19500 25000 19800 25300 21900 25900
Living Wage - Single Adult 11700 16400 10600 14300 11100 14400 13200 15100
Real wage of low-skilled worker 32600 35000 18900 19600 17500 19500 21700 25000
Real wage of medium-skilled worker 21500 32700 17300 25000 17500 28200 22300 35500
Real wage of high-skilled worker 33000 47600 27000 40500 26400 43100 34400 55100

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 PKR

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 276 802 76 100
Rice 29 109 80 105
Meat (beef, pork, poultry) 44 67 260 350
Oils (soyabean, olive, palm) 27 213 125 130
Sugar (Raw Equivalent) 111 248 58 60
Maize and products 35 113 50 80
Milk - Excluding Butter 439 281 77.5 84
Vegetables, Other 32 8 40 48.5
Potatoes and products 37 25 25 32
Butter, Ghee 12 103 100 110
Groundnuts (Shelled Eq) 3 6 140 150
Pulses, Other and products 11 37 115 130
Cassava and products 0 0 50 65
Egg (price per 10 eggs) 7 10 1500 80
Sunflowerseed Oil 2 17 160 160
Fish products 5 4 300 400
Beer 0 0 540 727
Sweeteners, Other 0 1 54 60
Beans 2 9 120 125
Sweet potatoes 0 0 20 30
Bananas 0 0 60 80
Soyabeans 0 0 120 130
Apples and products 7 4 70 100
Tomatoes and products 11 2 50 80
Onions 20 9 35 50
Oranges, Mandarines 21 6 80 100
Peas 3 10 80 120
Roots, Other 6 6 30 35
Seeds and kernels 0 0 260 300
Wine 0 0 400 600
Cream 0 0 100 200
Olives (including preserved) 4 11 800 800
Honey 0 0 570 650
Citrus, Other 0 0 70 100
Lemons, Limes and products 1 0 80 130
Tea (including mate) 2 1 640 730
Grapefruit and products 0 0 120 200
Coffee and products 0 0 380 500

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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