Living Wage Series - Tanzania - January 2018 - In Tanzanian Shilling, 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 Tanzanian Shilling)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 509600-670200 283100-372300 70800-93100
Housing 120000-150000 120000-150000 53300-83300
Transport 41600-60000 41600-60000 20800-30000
Health 50000-100000 50000-100000 12500-25000
Education 50000-100000 50000-100000 0
Other costs 38600-54000 27200-39100 7870-11600
Total Expenditure 809800-1134200 571900-821400 165270-243000
Net Living Wage 426211-596947 317722-456333 165270-243000
Gross Living Wage 545600-764100 406700-584100 211600-311000

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Tanzanian Shilling)

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 + 5.2 children, 1.9 working) 545600-764100
Standard family (two parents + 2 children, 1.8 working) 406700-584100
Two parents and two children, 2 working 366000-525700
Two parents and two children, 1.5 working 488000-700900
Two parents and two children, 1 working 732000-1051400
Two parents and three children, 1.9 working 435400-619300
Two parents and four children, 1.9 working 485500-685100
Single-adult without children, 1 working 211600-311000

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Tanzanian Shilling)

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 65000 65000 65000 65000
Living Wage - Single Adult .-. .-. .-. 211600-311000
Living Wage - Typical Family .-. .-. .-. 545600-764100
Real wage of low-skilled worker 55900-82800 277200-569300 295200-512700 242900-419500
Real wage of medium-skilled worker 80900-102800 392400-673500 433000-663000 374700-581600
Real wage of high-skilled worker 101400-142100 576000-1114500 616900-1035500 521100-884100

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 Tanzanian Shilling

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 72 213 2000-2000
Rice 57 201 1600-2000
Meat (beef, pork, poultry) 31 50 6000-7000
Oils (soyabean, olive, palm) 14 121 2000-3000
Sugar (Raw Equivalent) 44 100 2000-2000
Maize and products 158 516 1500-2000
Milk - Excluding Butter 109 58 1200-1200
Vegetables, Other 94 22 1900-2000
Potatoes and products 60 42 1500-2000
Butter, Ghee 2 20 2750-3500
Groundnuts (Shelled Eq) 38 115 1200-2500
Pulses, Other and products 21 70 1500-1500
Cassava and products 197 138 1500-1500
Egg (price per 10 eggs) 2 2 3000-3330
Sunflowerseed Oil 5 42 3000-3750
Fish products 15 12 5000-7100
Beer 22 10 4800-6000
Sweeteners, Other 0 1 2000-2000
Beans 35 119 1800-2000
Sweet potatoes 126 121 1500-2000
Bananas 103 62 2000-5000
Soyabeans 0 0 2000-2500
Yams 0 0 2000-2000
Apples and products 1 0 3400-4000
Tomatoes and products 21 4 2000-2000
Onions 8 3 2000-2500
Oranges, Mandarines 19 6 1250-2000
Plantains 30 27 1000-2000
Peas 0 0 1500-2000
Roots, Other 0 0 1000-1200
Seeds and kernels 6 15 1500-2500
Wine 0 0 13300-13300
Cream 0 0 2000-4000
Olives (including preserved) 1 2 2000-5000
Honey 2 5 5000-9000
Citrus, Other 2 1 1500-2000
Lemons, Limes and products 1 0 1000-1500
Tea (including mate) 0 0 4000-6000
Grapefruit and products 0 0 2000-3000
Coffee and products 0 0 5000-5000

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 2018 - - Living Wage Series - Tanzania - January 2018 - In Tanzanian Shilling, per Month