Living Wage Series - Argentina - September 2019 - In Argentine Peso, 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 ARS)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 4150-5590 3860-5200 965-1300
Housing expenses 9660-12200 9660-12200 5370-7000
Transport expenses 540-685 540-685 270-340
Healthcare expenses 800-1000 800-1000 200-250
Education expenses 800-1000 800-1000 0
Other expenses 795-1030 780-1010 340-445
Total Expenditure 16745-21505 16440-21095 7145-9335
Net Living Wage 10466-13441 9133-11719 7145-9335
Gross Living Wage 12600-16100 11000-14100 8580-11200

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in ARS)

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 + 2.3 children, 1.6 working) 12600-16100
Standard family (two parents + 2 children, 1.8 working) 11000-14100
Two parents and two children, 2 working 9870-12700
Two parents and two children, 1.5 working 13200-16900
Two parents and two children, 1 working 19700-25300
Two parents and three children, 1.6 working 13100-16800
Two parents and four children, 1.6 working 13900-17900
Single-adult without children, 1 working 8580-11200

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in ARS)

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 6060 8060 9500 12500
Living Wage - Single Adult 4690-6030 5500-7180 6560-8790 8580-11200
Living Wage - Typical Family 7890-10100 8890-11400 10300-13500 12600-16100
Real wage of low-skilled worker 5740-7400 7540-9540 8930-11300 10600-13100
Real wage of medium-skilled worker 7280-9690 9300-12200 11200-14800 13000-16700
Real wage of high-skilled worker 11100-15200 14100-19200 17200-23500 19100-25500

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.

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Food basket and food prices in ARS

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 188 582 20-28
Rice 16 59 12-15
Meat (beef, pork, poultry) 204 408 56-75
Oils (soyabean, olive, palm) 7 61 20-30
Sugar (Raw Equivalent) 75 265 11-13
Maize and products 19 57 18-19
Milk - Excluding Butter 352 169 13-15
Vegetables, Other 73 20 25-40
Potatoes and products 59 40 6-10
Butter, Ghee 5 38 50-65
Groundnuts (Shelled Eq) 1 3 -
Pulses, Other and products 1 3 15-30
Cassava and products 3 3 10-15
Egg (price per 10 eggs) 21 27 13-15
Sunflowerseed Oil 19 171 24-35
Fish products 13 8 70-70
Beer (0.5 liter/pint) 80 29 36-44
Sweeteners, Other 12 43 8-11
Beans 0 1 13-20
Sweet potatoes 16 14 9-15
Bananas 23 14 15-22
Soyabeans 0 0 15-30
Apples and products 36 17 18-25
Tomatoes and products 30 7 22-25
Onions 21 9 13-20
Oranges, Mandarines 39 10 22-30
Plantains 0 0 14-18
Peas 0 1 10-15
Seeds and kernels 0 0 12-12
Wine (bottle) 45 31 20-53
Pineapples and products 2 1 -
Cream 0 1 34-65
Olives (including preserved) 0 0 80-100
Honey 0 0 45-60
Lemons, Limes and products 8 1 15-20
Tea (including mate) 9 4 -
Grapefruit and products 7 1 12-15
Coffee and products 2 1 45-60

 

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). Estimating 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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