Living Wage Series - Portugal - August 2017 - In Euro, 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 (1.3 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (61% 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 EUR)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 275 380 332 460 83 115
Housing 250 320 250 320 200 275
Transport 60 72 60 72 30 36
Health 30 50 30 50 8 13
Education 50 100 50 100 0 0
Other costs 33 46 36 50 16 22
Total Expenditure 698 968 758 1052 337 461
Net Living Wage 436 605 421 584 337 461
Gross Living Wage 519 720 501 695 400 548

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in EUR)

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 + 1.3 children, 1.6 working) 520 720
Standard family (two parents + 2 children, 1.8 working) 500 695
Two parents and two children, 2 working 450 625
Two parents and two children, 1.5 working 600 835
Two parents and two children, 1 working 900 1250
Two parents and three children, 1.6 working 630 870
Two parents and four children, 1.6 working 695 960
Single-adult without children, 1 working 400 550

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in EUR)

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 589 . 618 . 618 . 650 .
Living Wage - Typical Family 625 850 560 785 525 765 520 720
Living Wage - Single Adult 475 600 450 575 445 575 400 550
Real wage of low-skilled worker 500 585 530 600 560 640 580 650
Real wage of medium-skilled worker 585 740 640 780 665 815 715 885
Real wage of high-skilled worker 990 1490 975 1400 940 1350 975 1390

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 EUR

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 178 476 1.9 2
Rice 26 97 .7 1
Meat (beef, pork, poultry) 163 253 3.8 5
Oils (soyabean, olive, palm) 27 234 1 1.2
Sugar (Raw Equivalent) 41 146 1 2
Maize and products 31 84 2 2
Milk - Excluding Butter 359 161 .5 .6
Vegetables, Other 201 47 1 2
Potatoes and products 122 78 .5 .8
Butter, Ghee 20 147 4.2 5
Groundnuts (Shelled Eq) 8 18 3 6
Pulses, Other and products 3 10 1 2
Egg (price per 10 eggs) 16 22 18.3 1.3
Sunflowerseed Oil 8 66 1 1.6
Fish products 94 52 5 8
Beer 80 40 2 2.8
Sweeteners, Other 7 14 .8 1
Beans 3 10 1 2
Sweet potatoes 1 1 1.2 1.5
Bananas 22 13 1 1
Soyabeans 0 0 2 3
Yams 0 0 1 2
Apples and products 46 22 1 1
Tomatoes and products 38 7 .9 1.2
Onions 27 10 .7 1
Oranges, Mandarines 66 17 .8 1
Plantains 1 1 1 1.9
Peas 1 3 1 2
Seeds and kernels 0 1 2 4
Wine 71 49 2.7 3.9
Pineapples and products 9 4 . .
Cream 3 6 2 3
Olives (including preserved) 2 3 2 2.7
Honey 2 4 2 3
Citrus, Other 0 0 .8 1
Lemons, Limes and products 4 1 1 1.3
Tea (including mate) 0 0 2 3
Grapefruit and products 2 0 1.5 2
Coffee and products 9 4 4 6

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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