Living Wage Series - Chile - September 2019 - 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 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 CLP)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 184600-247300 194300-260400 48600-65100
Housing expenses 285800-391300 285800-391300 170100-225000
Transport expenses 67800-80000 67800-80000 33900-40000
Healthcare expenses 30000-50000 30000-50000 7500-12500
Education expenses 50000-80000 50000-80000 0
Other expenses 30900-42400 31400-43100 13000-17100
Total Expenditure 649100-891000 659300-904800 273100-359700
Net Living Wage 405688-556875 366278-502667 273100-359700
Gross Living Wage 494900-679400 446900-613300 333200-438800

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in CLP)

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, 1.6 working) 494900-679400
Standard family (two parents + 2 children, 1.8 working) 446900-613300
Two parents and two children, 2 working 402200-551900
Two parents and two children, 1.5 working 536200-735900
Two parents and two children, 1 working 804400-1103900
Two parents and three children, 1.6 working 541600-741900
Two parents and four children, 1.6 working 580600-794100
Single-adult without children, 1 working 333200-438800

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in CLP)

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 250000 264000 276000 288000
Living Wage - Single Adult 296200-394100 312700-402900 317300-409700 333200-438800
Living Wage - Typical Family 453900-628600 473400-640100 476600-646100 494900-679400
Real wage of low-skilled worker 327700-418800 322500-405800 339400-423300 325200-401100
Real wage of medium-skilled worker 424400-586600 422900-580200 443000-603100 444000-597700
Real wage of high-skilled worker 762000-1146700 745200-1111700 767100-1136500 776100-1135200

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 CLP

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 1000-1500
Rice 18 62 600-800
Meat (beef, pork, poultry) 171 327 3200-4000
Oils (soyabean, olive, palm) 12 100 1000-1200
Sugar (Raw Equivalent) 89 313 600-700
Maize and products 42 144 -
Milk - Excluding Butter 230 110 690-750
Vegetables, Other 93 29 700-1000
Potatoes and products 122 87 500-600
Butter, Ghee 9 66 1300-2800
Groundnuts (Shelled Eq) 5 19 -
Pulses, Other and products 4 15 1200-2000
Cassava and products 0 0 600-725
Egg (price per 10 eggs) 20 26 1170-1330
Sunflowerseed Oil 3 25 1050-1450
Fish products 26 15 4000-6000
Beer (0.5 liter/pint) 86 31 1400-2270
Sweeteners, Other 6 16 600-900
Beans 3 11 1400-2000
Sweet potatoes 2 1 -
Bananas 19 12 600-780
Soyabeans 0 0 1000-1200
Apples and products 22 11 600-900
Tomatoes and products 20 4 600-900
Onions 29 12 500-700
Oranges, Mandarines 11 2 600-800
Plantains 1 1 -
Peas 1 2 -
Wine (bottle) 34 23 2670-3550
Pineapples and products 6 3 -
Cream 0 0 4000-5200
Olives (including preserved) 4 4 2000-2800
Honey 0 1 -
Citrus, Other 0 0 800-1000
Lemons, Limes and products 13 2 1000-1000
Tea (including mate) 3 1 -
Grapefruit and products 0 0 680-900
Coffee and products 1 1 2800-4000

 

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.

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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