Living wage Series - Russian Federation, August 2017

WageIndicator Living Wage Series - Wages in Context - Living Wages

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 (1.7 children per woman). One parent is working full-time and the working hours of second parent are approximated by national employment rate (67% 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 RUB)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 11700 15700 12600 16920 3150 4230
Housing 4500 7590 4500 7590 3700 7000
Transport 1920 2800 1920 2800 960 1400
Health 2000 2000 2000 2000 500 500
Education 2000 4000 2000 4000 0 0
Other costs 1110 1610 1150 1670 415 655
Total Expenditure 23230 33700 24170 34980 8725 13785
Net Living Wage 13665 19824 13428 19433 8725 13785
Gross Living Wage 15714 22797 15442 22348 10034 15853

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in RUB)

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 + 1.7 children, 1.7 working) 15700 22800
Standard family (two parents + 2 children, 1.8 working) 15400 22400
Two parents and two children, 2 working 13900 20100
Two parents and two children, 1.5 working 18500 26800
Two parents and two children, 1 working 27800 40200
Two parents and three children, 1.7 working 18600 26700
Two parents and four children, 1.7 working 20800 29700
Single-adult without children, 1 working 10000 15900

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in RUB)

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 5965 . 6204 . 6204 . 7500 .
Living Wage - Typical Family 18900 26200 18200 25200 18600 25500 15700 22800
Living Wage - Single Adult 16000 20900 15700 20300 16300 20800 10000 15900
Real wage of low-skilled worker 8830 12400 9500 12500 11900 15400 15500 21900
Real wage of medium-skilled worker 15600 24500 17600 26700 21500 30500 22900 34100
Real wage of high-skilled worker 23000 36500 25500 38300 29700 42600 33300 48700

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 RUB

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 253 714 40 50
Rice 8 29 40 50
Meat (beef, pork, poultry) 141 215 200 290
Oils (soyabean, olive, palm) 2 19 70 100
Sugar (Raw Equivalent) 76 262 40 50
Maize and products 1 2 35.5 55
Milk - Excluding Butter 290 174 38 45
Vegetables, Other 126 33 50 80
Potatoes and products 201 134 25 30
Butter, Ghee 10 74 200 300
Groundnuts (Shelled Eq) 4 12 150 200
Pulses, Other and products 0 0 40 60
Egg (price per 10 eggs) 27 38 833 50
Sunflowerseed Oil 22 195 80 100
Fish products 41 35 150 200
Beer 111 54 100 140
Sweeteners, Other 10 19 40 50
Sweet potatoes 0 0 50 125
Bananas 16 10 49 60
Soyabeans 0 0 200 200
Yams 0 0 180 180
Apples and products 42 16 50 70
Tomatoes and products 48 9 75 100
Onions 27 8 26 35
Oranges, Mandarines 20 6 50 64.5
Peas 3 11 35 40
Roots, Other 0 0 40 90
Seeds and kernels 0 1 85 100
Wine 16 12 267 333
Pineapples and products 2 1 . .
Cream 4 8 120 280
Olives (including preserved) 2 2 240 300
Honey 1 3 400 500
Citrus, Other 0 0 60 80
Lemons, Limes and products 3 1 90 120
Tea (including mate) 2 1 300 500
Grapefruit and products 2 1 80 100
Coffee and products 3 1 460 1000

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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