Living Wage Series - Chile - December 2018 - In Chilean 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 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 Chilean Peso)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 184900-249000 194700-262100 48700-65500
Housing 280000-355700 280000-355700 146900-195700
Transport 56000-60000 56000-60000 28000-30000
Health 30000-50000 30000-50000 7500-12500
Education 50000-100000 50000-100000 0
Other costs 30100-40700 30500-41400 11600-15200
Total Expenditure 631000-855400 641200-869200 242700-318900
Net Living Wage 371176-503176 356222-482889 242700-318900
Gross Living Wage 452800-613900 434600-589100 296100-389100

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Chilean Peso)

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 + 1.8 children, 1.7 working) 452800-613900
Standard family (two parents + 2 children, 1.8 working) 434600-589100
Two parents and two children, 2 working 391100-530200
Two parents and two children, 1.5 working 521500-707000
Two parents and two children, 1 working 782300-1060400
Two parents and three children, 1.7 working 496800-673200
Two parents and four children, 1.7 working 533500-722500
Single-adult without children, 1 working 296100-389100

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Chilean Peso)

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 241000 257000 270000 288000
Living Wage - Single Adult 281800-385000 291000-379200 298200-394100 296100-389100
Living Wage - Typical Family 436800-608200 444000-598700 451100-615100 452800-613900
Real wage of low-skilled worker 297700-369400 315600-388100 311300-385000 320700-391400
Real wage of medium-skilled worker 408100-562500 415000-571500 423300-587800 431900-589600
Real wage of high-skilled worker 762800-1138100 763700-1136200 771600-1158200 775000-1142800

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.

Chile Graph

Food basket and food prices in Chilean Peso

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 218 626 1000-1400
Rice 18 62 650-800
Meat (beef, pork, poultry) 171 327 3000-4000
Oils (soyabean, olive, palm) 12 100 1000-1200
Sugar (Raw Equivalent) 89 313 600-800
Maize and products 42 143 1400-2000
Milk - Excluding Butter 230 110 650-700
Vegetables, Other 93 29 800-1200
Potatoes and products 122 87 500-600
Butter, Ghee 9 66 1500-3000
Groundnuts (Shelled Eq) 5 19 2500-3200
Pulses, Other and products 4 15 1200-1720
Cassava and products 0 0 500-775
Egg (price per 10 eggs) 20 26 1200-1330
Sunflowerseed Oil 3 25 1100-1500
Fish products 26 15 3000-4000
Beer (0.5 liter/pint) 86 31 1400-2120
Sweeteners, Other 6 16 600-900
Beans 3 11 1400-1800
Sweet potatoes 2 1 500-600
Bananas 19 12 600-700
Soyabeans 0 0 1200-2000
Apples and products 22 11 500-800
Tomatoes and products 20 4 690-800
Onions 29 12 500-700
Oranges, Mandarines 11 2 600-800
Plantains 1 1 600-700
Peas 1 2 1150-1500
Roots, Other 0 0 600-850
Seeds and kernels 0 0 2000-4000
Wine (bottle) 34 23 2670-4000
Pineapples and products 6 3 1330-1670
Cream 0 0 1500-2960
Olives (including preserved) 4 4 2000-3000
Honey 0 1 2500-3500
Citrus, Other 0 0 600-800
Lemons, Limes and products 13 2 700-1000
Tea (including mate) 3 1 1500-2300
Grapefruit and products 0 0 700-900
Coffee and products 1 1 3000-4000

 

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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