Living wage Series - Paraguay - October 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 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 Guarani)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 1086200 1395600 944500 1213600 236100 303400
Housing 900000 1300000 900000 1300000 500000 723300
Transport 278400 300000 278400 300000 139200 150000
Health 200000 300000 200000 300000 50000 75000
Education 200000 348000 200000 348000 0 0
Other costs 133200 182200 126200 173100 46300 62600
Total Expenditure 2797800 3825800 2649100 3634700 971600 1314300
Net Living Wage 1554333 2125445 1471722 2019278 971600 1314300
Gross Living Wage 1709800 2338000 1618900 2221200 1068800 1445700

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Guarani)

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 + 2.6 children, 1.8 working) 1709800 2338000
Standard family (two parents + 2 children, 1.8 working) 1618900 2221200
Two parents and two children, 2 working 1457000 1999100
Two parents and two children, 1.5 working 1942700 2665500
Two parents and two children, 1 working 2914000 3998200
Two parents and three children, 1.8 working 1770500 2415900
Two parents and four children, 1.8 working 1922000 2610600
Single-adult without children, 1 working 1068800 1445700

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Guarani)

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 1658232 1824055 1824055 1824055 1824055 1824055 1964507 1964507
Living Wage - Single Adult . . . . . . 1068800 1445700
Living Wage - Typical Family . . . . . . 1709800 2338000
Real wage of low-skilled worker 1951300 2670500 1761100 2247100 1983900 2717800 1975500 2672000
Real wage of medium-skilled worker 1993700 2565200 2050900 2579300 2069900 2581300 2178700 2840300
Real wage of high-skilled worker 2949700 4527400 3002500 4488700 3083200 4599800 3226400 5018400

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 Guarani

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 10380
Sugar (Raw Equivalent) 55 200 4500 5000
Maize and products 135 458 4000 6000
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 5000 6250
Sunflowerseed Oil 4 37 9000 13000
Fish products 8 6 30000 40000
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 3380 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 27500
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

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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