Living Wage Series - Cambodia - December 2018 - In Riel, 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 Riel)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 671100-935800 571100-796500 142800-199100
Housing 600000-840000 600000-840000 293500-408300
Transport 40000-65000 40000-65000 20000-32500
Health 80000-100000 80000-100000 20000-25000
Education 80000-150000 80000-150000 0
Other costs 73600-104500 68600-97600 23800-33300
Total Expenditure 1544700-2195300 1439700-2049100 500100-698200
Net Living Wage 813000-1155421 799833-1138389 500100-698200
Gross Living Wage 886200-1259400 871800-1240900 545100-761000

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Riel)

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 + 2.7 children, 1.9 working) 886200-1259400
Standard family (two parents + 2 children, 1.8 working) 871800-1240900
Two parents and two children, 2 working 784600-1116800
Two parents and two children, 1.5 working 1046200-1489000
Two parents and two children, 1 working 1569300-2233500
Two parents and three children, 1.9 working 911900-1295400
Two parents and four children, 1.9 working 997900-1415400
Single-adult without children, 1 working 545100-761000

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Riel)

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 512000 560000 612000 680000
Living Wage - Single Adult - - - 545100-761000
Living Wage - Typical Family - - - 886200-1259400
Real wage of low-skilled worker - - - 160000-481500
Real wage of medium-skilled worker - - - 933500-1316200
Real wage of high-skilled worker - - - 1407100-2160400

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.

Cambodia Graph

Food basket and food prices in Riel

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 7 22 7000-8000
Rice 376 1308 2000-2500
Meat (beef, pork, poultry) 34 84 20000-30000
Oils (soyabean, olive, palm) 7 59 6000-6500
Sugar (Raw Equivalent) 62 159 2800-3000
Maize and products 29 96 3000-3750
Milk - Excluding Butter 8 5 8000-8000
Vegetables, Other 88 20 4500-5000
Potatoes and products 0 0 4000-4500
Butter, Ghee 2 13 12000-16000
Groundnuts (Shelled Eq) 6 19 8000-10000
Pulses, Other and products 1 2 2500-4000
Cassava and products 60 60 2700-3500
Egg (price per 10 eggs) 3 4 5000-5000
Sunflowerseed Oil 0 0 15000-15000
Fish products 98 73 15000-26000
Beer (0.5 liter/pint) 77 38 4920-5000
Beans 11 37 6000-10000
Sweet potatoes 8 8 3000-3900
Bananas 25 16 2000-2500
Soyabeans 10 38 8000-10000
Apples and products 1 0 7000-10000
Tomatoes and products 0 0 3500-4500
Onions 0 0 3700-4000
Oranges, Mandarines 10 3 6500-7000
Peas 0 0 6000-9000
Roots, Other 5 5 4000-5000
Seeds and kernels 5 32 10000-10000
Wine (bottle) 0 0 26700-53300
Pineapples and products 4 1 2000-2220
Cream 0 0 5000-9000
Olives (including preserved) 0 0 8000-8000
Honey 0 0 50000-50000
Lemons, Limes and products 0 0 3500-5000
Tea (including mate) 0 0 13000-15000
Coffee and products 1 0 15000-18000

 

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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