Living Wage Series - Chile - January 2018 - In Chilean Peso, per Month

WageIndicator Living Wage Series - Wages in Context - Living Wages / in 2018

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 182700-247200 192300-260200 48100-65000
Housing 280000-353800 280000-353800 156800-195000
Transport 54000-66000 54000-66000 27000-33000
Health 30000-50000 30000-50000 7500-12500
Education 35000-95000 35000-95000 0
Other costs 29100-40600 29600-41300 12000-15300
Total Expenditure 610800-852600 620900-866300 251400-320800
Net Living Wage 359294-501529 344944-481278 251400-320800
Gross Living Wage 438300-611900 420800-587200 306700-391400

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.

Typical family (two parents + 1.8 children, 1.7 working) 438300-611900
Standard family (two parents + 2 children, 1.8 working) 420800-587200
Two parents and two children, 2 working 378800-528500
Two parents and two children, 1.5 working 505000-704600
Two parents and two children, 1 working 757500-1056900
Two parents and three children, 1.7 working 481800-670600
Two parents and four children, 1.7 working 518100-719700
Single-adult without children, 1 working 306700-391400

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 276000
Living Wage - Single Adult 281100-389300 286800-380200 310400-402400 306700-391400
Living Wage - Typical Family 405400-598900 418500-598600 445100-625700 438300-611900
Real wage of low-skilled worker 290300-363600 300700-381400 315900-397600 309100-388700
Real wage of medium-skilled worker 403300-547900 415100-577000 414000-570600 419000-577800
Real wage of high-skilled worker 755900-1112800 783400-1179700 771200-1149700 773200-1154700

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.

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 itemGrams per dayEnergy (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 1300-2000
Milk - Excluding Butter 230 110 650-700
Vegetables, Other 93 29 800-1200
Potatoes and products 122 87 500-600
Butter, Ghee 9 66 1200-2000
Groundnuts (Shelled Eq) 5 19 2000-3000
Pulses, Other and products 4 15 1000-1500
Cassava and products 0 0 500-700
Egg (price per 10 eggs) 20 26 1200-1330
Sunflowerseed Oil 3 25 2-2
Fish products 26 15 3000-4000
Beer 86 31 1400-2200
Sweeteners, Other 6 16 600-900
Beans 3 11 1300-1800
Sweet potatoes 2 1 500-600
Bananas 19 12 600-700
Soyabeans 0 0 1200-1500
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 1000-1400
Roots, Other 0 0 600-700
Seeds and kernels 0 0 2000-4000
Wine 34 23 2670-4000
Pineapples and products 6 3 .-.
Cream 0 0 1200-2500
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 2990-3600

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.