Living wage Series - Paraguay - August 2017 - In PYG per Month

WageIndicator Living Wage Series - Wages in Context - Living Wages / in 2017

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 (2.6 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (76% 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 PYG)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 1054400 1337700 916800 1163200 229200 290800
Housing 800000 1000000 800000 1000000 450000 625000
Transport 200000 300000 200000 300000 100000 150000
Health 200000 300000 200000 300000 50000 75000
Education 200000 375000 200000 375000 0 0
Other costs 122700 165600 115800 156900 41500 57000
Total Expenditure 2577100 3478300 2432600 3295100 870700 1197800
Net Living Wage 1431722 1932389 1351445 1830611 870700 1197800
Gross Living Wage 1574895 2125628 1486589 2013672 957770 1317580

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in PYG)

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 + 2.6 children, 1.8 working) 1574900 2125600
Standard family (two parents + 2 children, 1.8 working) 1486600 2013700
Two parents and two children, 2 working 1337900 1812300
Two parents and two children, 1.5 working 1783900 2416400
Two parents and two children, 1 working 2675900 3624600
Two parents and three children, 1.8 working 1633700 2200300
Two parents and four children, 1.8 working 1780800 2386900
Single-adult without children, 1 working 957800 1317600

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in PYG)

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 1824055 . 1824055 . 1824055 . 1964507 .
Living Wage - Typical Family 1652500 2231000 1570400 2123200 1538600 2144000 1574900 2125600
Living Wage - Single Adult 924600 1325800 923300 1295500 948500 1309500 957800 1317600
Real wage of low-skilled worker 1892700 2487500 2020000 2702100 2139700 2909100 2053200 2643800
Real wage of medium-skilled worker 2030500 2615500 2050300 2628800 2079600 2642300 2217400 2801600
Real wage of high-skilled worker 3138500 4578500 3022200 4579100 3111700 4677700 3239500 4928300

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 PYG

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 73 189 5000 7000
Rice 11 42 3500 4000
Meat (beef, pork, poultry) 132 210 16000 20000
Oils (soyabean, olive, palm) 26 224 8000 10640
Sugar (Raw Equivalent) 55 200 4500 5000
Maize and products 135 458 4000 5500
Milk - Excluding Butter 172 110 4000 4500
Vegetables, Other 66 14 4000 6000
Potatoes and products 7 4 4000 5000
Butter, Ghee 10 77 7000 9000
Groundnuts (Shelled Eq) 4 20 5500 6000
Pulses, Other and products 5 16 5000 5000
Cassava and products 281 240 1500 2500
Egg (price per 10 eggs) 43 56 100000 6300
Sunflowerseed Oil 4 37 9000 13130
Fish products 8 6 30000 39000
Beer 79 39 10000 16000
Sweeteners, Other 2 4 5000 6000
Beans 12 39 4000 5000
Sweet potatoes 13 11 4000 5000
Bananas 11 7 3000 5000
Soyabeans 0 0 5000 7200
Apples and products 3 1 6000 8000
Tomatoes and products 24 6 6000 8000
Onions 9 3 4000 5000
Oranges, Mandarines 92 25 3450 5000
Peas 2 6 4000 5000
Roots, Other 0 0 4000 5000
Seeds and kernels 6 30 10000 15000
Wine 7 5 20000 24000
Pineapples and products 19 7 . .
Cream 0 0 7000 16000
Olives (including preserved) 0 0 25000 30000
Honey 1 2 20000 30000
Citrus, Other 0 0 4000 5000
Lemons, Limes and products 3 1 3000 4500
Tea (including mate) 27 11 6500 8000
Grapefruit and products 4 1 3000 5000
Coffee and products 1 0 13000 18000

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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