Living Wage Series - Angola - September 2019 - 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 70 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 AOA)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 100800-143900 51700-73800 12900-18500
Housing expenses 25000-35000 25000-35000 15000-25000
Transport expenses 1000-1100 1000-1100 500-550
Healthcare expenses 20000-30000 20000-30000 5000-7500
Education expenses 15000-25000 15000-25000 0
Other expenses 8090-11800 5640-8250 1670-2580
Total Expenditure 169890-246800 118340-173150 35070-54130
Net Living Wage 94383-137111 65744-96194 35070-54130
Gross Living Wage 104800-152200 73000-106800 38900-60100

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in AOA)

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 + 5.8 children, 1.8 working) 104800-152200
Standard family (two parents + 2 children, 1.8 working) 73000-106800
Two parents and two children, 2 working 65700-96100
Two parents and two children, 1.5 working 87600-128100
Two parents and two children, 1 working 131400-192200
Two parents and three children, 1.8 working 81300-118800
Two parents and four children, 1.8 working 89800-130700
Single-adult without children, 1 working 38900-60100

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in AOA)

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.

  2016 2017 2018 2019
Minimum wage 15003 16003 16003 21454
Living Wage - Single Adult - - - 38900-60100
Living Wage - Typical Family - - - 104800-152200
Real wage of low-skilled worker 54400-87300 57800-91800 57800-90700 62500-92300
Real wage of medium-skilled worker 61700-114000 70500-130100 72100-128400 74200-125400
Real wage of high-skilled worker 101700-185700 114600-210600 119600-218200 126800-215900

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.

24_Angola

Food basket and food prices in AOA

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 101 260 100-200
Rice 19 71 150-200
Meat (beef, pork, poultry) 89 166 1000-1500
Oils (soyabean, olive, palm) 21 183 440-500
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 35 200-290
Butter, Ghee 1 10 300-400
Groundnuts (Shelled Eq) 6 29 200-380
Cassava and products 475 491 200-200
Egg (price per 10 eggs) 3 3 333-500
Sunflowerseed Oil 1 4 -
Fish products 37 22 600-1500
Beer (0.5 liter/pint) 134 58 200-300
Sweeteners, Other 0 0 150-150
Beans 22 71 250-300
Sweet potatoes 118 113 250-300
Bananas 128 76 200-300
Soyabeans 1 4 234-300
Apples and products 2 1 300-450
Tomatoes and products 11 3 150-200
Onions 1 0 150-200
Oranges, Mandarines 1 0 480-700
Roots, Other 0 0 200-300
Seeds and kernels 0 2 400-652
Wine (bottle) 11 8 667-933
Pineapples and products 48 22 -
Honey 3 8 1000-1350
Citrus, Other 31 9 350-350
Tea (including mate) 0 0 300-300
Coffee and products 1 1 300-350

 

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:

Publication Guzi, M., & Kahanec, M. (2019).  Living Wage Globally. Amsterdam, WageIndicator Foundation
WageIndicator Wages in Context Map with the latest updates
All You Always wanted to Know about Living Wages
Donations

 


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