Living Wage Series - Angola - January 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 105700-146000 51500-71200 12900-17800
Housing 30000-45000 30000-45000 15000-30000
Transport 1000-1100 1000-1100 500-550
Health 20000-15100 20000-15100 5000-3770
Education 15000-19000 15000-19000 0
Other costs 8590-11300 5880-7570 1670-2610
Total Expenditure 180290-237500 123380-158970 35070-54735
Net Living Wage 100161-131944 68544-88317 35070-54735
Gross Living Wage 111200-146500 76100-98000 38900-60800

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.

Typical family (two parents + 6.2 children, 1.8 working) 111200-146500
Standard family (two parents + 2 children, 1.8 working) 76100-98000
Two parents and two children, 2 working 68500-88200
Two parents and two children, 1.5 working 91300-117600
Two parents and two children, 1 working 137000-176500
Two parents and three children, 1.8 working 84400-109600
Two parents and four children, 1.8 working 92800-121200
Single-adult without children, 1 working 38900-60800

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 .-. .-. .-. 38900-60800
Living Wage - Typical Family .-. .-. .-. 111200-146500
Real wage of low-skilled worker 28500-49000 31900-51700 38300-58200 26800-47400
Real wage of medium-skilled worker 54400-110000 61100-110000 70700-127300 58800-130600
Real wage of high-skilled worker 93100-188600 98500-179200 114800-209600 94600-211500

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 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 itemGrams per dayEnergy (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) 21 183 400-600
Sugar (Raw Equivalent) 36 119 200-350
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 470 486 200-250
Egg (price per 10 eggs) 3 3 375-500
Sunflowerseed Oil 1 4 500-700
Fish products 36 22 1000-1500
Beer 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 1 300-450
Tomatoes and products 11 3 150-250
Onions 1 0 100-200
Oranges, Mandarines 1 0 450-550
Roots, Other 0 0 160-200
Seeds and kernels 0 2 300-513
Wine 11 8 1070-1330
Pineapples and products 48 22 .-.
Honey 3 8 900-1100
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.