Living Wages in Tanzania - October 2017 - Per month in TZS

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 Tanzanian Shilling)

  Typical family   Standard family   Single-adult  
  from to from to from to
Food 503500 652800 279700 362700 69900 90700
Housing 140000 200000 140000 200000 53100 80000
Transport 41600 60000 41600 60000 20800 30000
Health 50000 100000 50000 100000 12500 25000
Education 29000 80000 29000 80000 0 0
Other costs 38200 54600 27000 40100 7820 11300
Total Expenditure 802300 1147400 567300 842800 164120 237000
Net Living Wage 422263 603895 315167 468222 164120 237000
Gross Living Wage 544700 779000 406600 604000 211700 305700

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.

  from to
Typical family (two parents + 5.2 children, 1.9 working) 544700 779000
Standard family (two parents + 2 children, 1.8 working) 406600 604000
Two parents and two children, 2 working 365900 543600
Two parents and two children, 1.5 working 487900 724800
Two parents and two children, 1 working 731800 1087200
Two parents and three children, 1.9 working 435100 636900
Two parents and four children, 1.9 working 484900 701500
Single-adult without children, 1 working 211700 305700

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.

  2014 . 2015 . 2016 . 2017 .
  from to from to from to from to
Minimum wage 65000 65000 65000 65000 65000 65000 65000 65000
Living Wage - Single Adult . . . . . . 211700 305700
Living Wage - Typical Family . . . . . . 544700 779000
Real wage of low-skilled worker 57100 83500 235600 640600 313600 609500 293100 484700
Real wage of medium-skilled worker 68600 88600 249100 490500 393300 655400 399500 626900
Real wage of high-skilled worker 92000 125900 516000 1131900 581100 1042700 580700 940800

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 fromto
Wheat, barley and cereals 72 213 2000 2000
Rice 57 201 1500 2000
Meat (beef, pork, poultry) 31 50 6000 7500
Oils (soyabean, olive, palm) 14 121 2000 3000
Sugar (Raw Equivalent) 44 100 2000 2000
Maize and products 158 516 500 1500
Milk - Excluding Butter 109 58 1200 1200
Vegetables, Other 94 22 2000 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 3000
Sunflowerseed Oil 5 42 . .
Fish products 15 12 5000 7000
Beer 22 10 4900 6000
Sweeteners, Other 0 1 2000 2000
Beans 35 119 1800 2000
Sweet potatoes 126 121 1000 1500
Bananas 103 62 1500 2500
Soyabeans 0 0 2000 2500
Yams 0 0 2000 2000
Apples and products 1 0 3400 4000
Tomatoes and products 21 4 2000 2500
Onions 8 3 2000 2500
Oranges, Mandarines 19 6 1500 3000
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 5500 9500
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 3000 3000
Coffee and products 0 0 3500 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.

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