Living Wage Series - Rwanda - October 2017 - In Rwanda Franc per Month

Living wages, Wages in context - Rwanda

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 Rwanda Franc)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 144400 170100 96200 113400 24100 28400
Housing 35000 40000 35000 40000 20000 25000
Transport 20000 20000 20000 20000 10000 10000
Health 15000 15000 15000 15000 3750 3750
Education 50000 50000 50000 50000 0 0
Other costs 13200 14800 10800 11900 2890 3360
Total Expenditure 277600 309900 227000 250300 60740 70510
Net Living Wage 146105 163105 126111 139056 60740 70510
Gross Living Wage 204600 228400 176600 194700 85000 98700

Note: For more details see Living Wage FAQ.


Family Living Wages (monthly rates in Rwanda Franc)

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 + 4 children, 1.9 working) 204600 228400
Standard family (two parents + 2 children, 1.8 working) 176600 194700
Two parents and two children, 2 working 158900 175200
Two parents and two children, 1.5 working 211900 233600
Two parents and two children, 1 working 317800 350400
Two parents and three children, 1.9 working 185900 206400
Two parents and four children, 1.9 working 204600 228400
Single-adult without children, 1 working 85000 98700

Note: Results in the table are rounded.


Living Wages in Context (monthly rates in Rwanda Franc)

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 . . . . . . . .
Living Wage - Single Adult . . . . . . 85000 98700
Living Wage - Typical Family . . . . . . 204600 228400
Real wage of low-skilled worker . . . . . . 29700 167200
Real wage of medium-skilled worker . . . . . . 177000 245100
Real wage of high-skilled worker . . . . . . 245100 504700

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 Rwanda Franc

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 item Grams per day Energy (kcal) Price per kilo from to
Wheat, barley and cereals 59 176 1000 1500
Rice 23 82 800 850
Meat (beef, pork, poultry) 24 36 2000 2500
Oils (soyabean, olive, palm) 6 52 . .
Sugar (Raw Equivalent) 14 49 . .
Maize and products 39 123 . .
Milk - Excluding Butter 19 12 400 400
Vegetables, Other 117 25 550 900
Potatoes and products 268 192 200 250
Butter, Ghee 1 6 . .
Groundnuts (Shelled Eq) 2 9 . .
Cassava and products 258 264 250 250
Egg (price per 10 eggs) 0 1 1000 1000
Fish products 10 7 2500 3000
Beer 15 7 1400 1460
Beans 92 308 500 600
Sweet potatoes 232 223 250 250
Bananas 752 451 250 275
Soyabeans 5 21 . .
Yams 16 16 . .
Apples and products 0 0 500 650
Tomatoes and products 29 5 700 950
Onions 3 1 500 500
Oranges, Mandarines 2 1 . .
Peas 6 19 1000 1000
Roots, Other 19 17 . .
Seeds and kernels 0 0 1000 1000
Cream 0 0 1500 2000
Citrus, Other 0 0 1500 1500
Lemons, Limes and products 3 0 500 800
Grapefruit and products 0 0 1500 1500
Coffee and products 0 0 4500 4500

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.

Cite this page: © WageIndicator 2017 - WageIndicator.org - Living Wage Series - Rwanda - October 2017 - In Rwanda Franc per Month