Living Wages in Peru, per month in PEN

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 (2.5 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (80% 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 PEN)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 630 780 560 700 140 175
Housing 475 600 475 600 250 365
Transport 108 180 108 180 54 90
Health 50 200 50 200 13 50
Education 200 500 200 500 0 0
Other costs 73 115 70 110 23 34
Total Expenditure 1536 2375 1463 2290 480 714
Net Living Wage 853 1319 813 1272 480 714
Gross Living Wage 990 1531 943 1476 556 828

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in PEN)

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 + 2.5 children, 1.8 working) 990 1530
Standard family (two parents + 2 children, 1.8 working) 945 1480
Two parents and two children, 2 working 850 1330
Two parents and two children, 1.5 working 1130 1770
Two parents and two children, 1 working 1700 2660
Two parents and three children, 1.8 working 1040 1600
Two parents and four children, 1.8 working 1130 1710
Single-adult without children, 1 working 555 830

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in PEN)

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 750 . 750 . 850 . 850 .
Living Wage - Typical Family 1090 1610 995 1600 965 1530 990 1530
Living Wage - Single Adult 595 815 590 820 575 860 555 830
Real wage of low-skilled worker 1290 1840 1210 1460 850 1150 900 1150
Real wage of medium-skilled worker 1380 1940 1460 2020 1230 1790 1530 2320
Real wage of high-skilled worker 3000 4670 2560 3850 2270 3740 2620 4270

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 PEN

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 136 326 3 4
Rice 109 422 2.5 3
Meat (beef, pork, poultry) 62 94 10 12
Oils (soyabean, olive, palm) 15 131 5 6
Sugar (Raw Equivalent) 48 170 2.5 3
Maize and products 43 150 2 3
Milk - Excluding Butter 138 83 3 3.7
Vegetables, Other 100 33 2 3
Potatoes and products 184 180 1.4 1.8
Butter, Ghee 2 13 6.5 10
Groundnuts (Shelled Eq) 4 14 4 8
Pulses, Other and products 10 33 4 4.3
Cassava and products 64 103 1.5 2
Egg (price per 10 eggs) 20 25 66.7 3.3
Sunflowerseed Oil 1 7 . .
Fish products 49 35 8 10
Beer 105 37 8 10
Sweeteners, Other 3 12 2.8 2.8
Beans 5 15 3.2 4.5
Sweet potatoes 16 18 1.5 2
Bananas 7 4 1.5 2
Soyabeans 4 14 4 5
Apples and products 12 7 2.5 3
Tomatoes and products 13 2 2 2
Onions 35 15 1.6 2
Oranges, Mandarines 40 15 2 3
Plantains 96 80 1.5 2
Peas 5 17 4 4.3
Roots, Other 17 11 1.5 2
Seeds and kernels 0 0 7 10
Wine 6 4 19.3 20
Pineapples and products 28 11 . .
Cream 0 0 5 9.9
Olives (including preserved) 6 15 5 8
Citrus, Other 3 1 3 4
Lemons, Limes and products 12 3 2.5 3
Tea (including mate) 0 0 5 5.5
Grapefruit and products 0 0 2.5 3
Coffee and products 1 1 10 14

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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