Living Wage Series - Angola - December 2018 - In Kwanza, 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 Kwanza)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 105500-148000 51500-72200 12900-18100
Housing 25000-35000 25000-35000 17800-27100
Transport 400-650 400-650 200-325
Health 15000-30000 15000-30000 3750-7500
Education 15000-17000 15000-17000 0
Other costs 8050-11500 5350-7740 1730-2650
Total Expenditure 168950-242150 112250-162590 36380-55675
Net Living Wage 93861-134528 62361-90328 36380-55675
Gross Living Wage 104200-149300 69200-100300 40400-61800

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Kwanza)

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 + 6.2 children, 1.8 working) 104200-149300
Standard family (two parents + 2 children, 1.8 working) 69200-100300
Two parents and two children, 2 working 62300-90200
Two parents and two children, 1.5 working 83100-120300
Two parents and two children, 1 working 124600-180500
Two parents and three children, 1.8 working 77500-112000
Two parents and four children, 1.8 working 85900-123600
Single-adult without children, 1 working 40400-61800

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Kwanza)

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 15003 15003 15003 15003
Living Wage - Single Adult - - - 40400-61800
Living Wage - Typical Family - - - 104200-149300
Real wage of low-skilled worker 43400-58000 48700-57300 43800-64300 51100-61300
Real wage of medium-skilled worker 58000-109200 62300-107300 60400-128100 72100-128300
Real wage of high-skilled worker 99700-190600 104500-181800 101200-217000 126000-230800

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.

Angola Graph

Food basket and food prices in Kwanza

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
Wheat, barley and cereals products 100 258 150-200
Rice 19 71 150-200
Meat (beef, pork, poultry) 89 166 800-1200
Oils (soyabean, olive, palm) 21 183 350-500
Sugar (Raw Equivalent) 36 119 200-300
Maize and products 92 293 200-250
Milk - Excluding Butter 29 17 200-250
Vegetables, Other 149 30 300-400
Potatoes and products 48 35 200-200
Butter, Ghee 1 10 300-400
Groundnuts (Shelled Eq) 6 29 200-250
Cassava and products 470 486 200-275
Egg (price per 10 eggs) 3 3 417-500
Sunflowerseed Oil 1 4 500-750
Fish products 36 22 1000-1500
Beer (0.5 liter/pint) 134 58 200-300
Sweeteners, Other 0 0 200-200
Beans 21 70 250-300
Sweet potatoes 117 112 200-300
Bananas 128 76 200-300
Soyabeans 1 4 200-300
Apples and products 2 1 300-460
Tomatoes and products 11 3 150-250
Onions 1 0 100-200
Oranges, Mandarines 1 0 465-650
Roots, Other 0 0 160-200
Seeds and kernels 0 2 300-525
Wine (bottle) 11 8 1070-1330
Pineapples and products 48 22 -
Honey 3 8 950-1100
Citrus, Other 30 9 300-400
Tea (including mate) 0 0 300-400
Coffee and products 1 1 300-500

 

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.

WageIndicator useful links:


CEU Ads