Living Wage Series - Romania - January 2018 - In New Romanian Leu, 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 uses prices from the Cost of Living Survey to calculate Living Wage in more than 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 New Romanian Leu)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 795-1060 910-1210 230-300
Housing 515-800 515-800 300-485
Transport 100-120 100-120 50-60
Health 100-200 100-200 25-50
Education 150-200 150-200 0
Other costs 83-120 89-125 30-45
Total Expenditure 1743-2500 1864-2655 635-940
Net Living Wage 1089-1563 1036-1475 635-940
Gross Living Wage 1490-2140 1420-2020 870-1290

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in New Romanian Leu)

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.

Typical family (two parents + 1.5 children, 1.6 working) 1490-2140
Standard family (two parents + 2 children, 1.8 working) 1420-2020
Two parents and two children, 2 working 1280-1820
Two parents and two children, 1.5 working 1700-2430
Two parents and two children, 1 working 2560-3640
Two parents and three children, 1.6 working 1800-2550
Two parents and four children, 1.6 working 2010-2820
Single-adult without children, 1 working 870-1290

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in New Romanian Leu)

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.

  2015 2016 2017 2018
Minimum wage 1050 1250 1450 1900
Living Wage - Single Adult 905-1280 865-1200 850-1240 870-1290
Living Wage - Typical Family 1680-2280 1530-2040 1470-2090 1490-2140
Real wage of low-skilled worker 900-1070 1020-1180 1060-1240 1200-1440
Real wage of medium-skilled worker 1050-1270 1180-1400 1240-1490 1450-1820
Real wage of high-skilled worker 1420-1860 1600-2050 1730-2290 2120-2920

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 New Romanian Leu

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
Wheat, barley and cereals products 246 661 3-4.8
Rice 5 16 3-4
Meat (beef, pork, poultry) 93 141 15-20
Oils (soyabean, olive, palm) 4 36 4-5
Sugar (Raw Equivalent) 40 141 3-3.1
Maize and products 72 203 6-8
Milk - Excluding Butter 423 279 3-4
Vegetables, Other 213 49 3-4
Potatoes and products 177 117 1.5-2
Butter, Ghee 7 52 11-20
Groundnuts (Shelled Eq) 4 10 11-18
Pulses, Other and products 0 1 4-7
Egg (price per 10 eggs) 23 32 5-5.4
Sunflowerseed Oil 19 168 4.6-5.9
Fish products 11 8 20-25
Beer 143 70 5.4-6
Sweeteners, Other 4 14 3-3
Beans 3 10 7.2-8.3
Sweet potatoes 0 0 6-8.9
Bananas 3 2 4-5
Soyabeans 0 0 8-14
Apples and products 39 19 2.5-3
Tomatoes and products 70 12 4-5
Onions 35 14 2-2
Oranges, Mandarines 14 4 3.5-4
Plantains 4 3 7-8
Peas 0 1 6-8
Roots, Other 0 0 2.3-3
Seeds and kernels 0 2 10-10
Wine 37 25 13-20
Pineapples and products 1 1 7-7
Cream 0 0 9-12
Olives (including preserved) 2 3 15-17
Honey 1 4 20-25
Citrus, Other 0 0 6-7
Lemons, Limes and products 3 1 5-6.9
Tea (including mate) 0 0 20-25
Grapefruit and products 2 1 6-7
Coffee and products 4 2 25-30

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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