Living Wage Series - Finland - December 2018 - In Euro, 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 Euro)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 550-750 580-790 145-200
Housing 750-940 750-940 450-565
Transport 100-110 100-110 51-55
Health 50-80 50-80 13-20
Education 60-100 60-100 0
Other costs 76-99 77-100 33-42
Total Expenditure 1586-2079 1617-2120 692-882
Net Living Wage 991-1299 898-1178 692-882
Gross Living Wage 1300-1700 1180-1550 905-1160

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Euro)

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) 1300-1700
Standard family (two parents + 2 children, 1.8 working) 1180-1550
Two parents and two children, 2 working 1060-1390
Two parents and two children, 1.5 working 1410-1850
Two parents and two children, 1 working 2120-2780
Two parents and three children, 1.6 working 1450-1910
Two parents and four children, 1.6 working 1580-2080
Single-adult without children, 1 working 905-1160

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Euro)

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 - - - -
Living Wage - Single Adult 910-1130 910-1180 940-1190 905-1160
Living Wage - Typical Family 1310-1720 1310-1770 1340-1780 1300-1700
Real wage of low-skilled worker 1530-1980 1260-1580 1540-2000 1530-1980
Real wage of medium-skilled worker 2170-2660 1850-2190 2200-2690 2200-2680
Real wage of high-skilled worker 3330-4250 2940-3650 3320-4230 3350-4250

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.

Finland Graph

Food basket and food prices in Euro

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 199 592 2-4
Rice 8 29 1.5-2
Meat (beef, pork, poultry) 141 347 8-10
Oils (soyabean, olive, palm) 16 137 -
Sugar (Raw Equivalent) 50 180 1-1
Maize and products 0 0 4-4
Milk - Excluding Butter 773 333 .8-1
Vegetables, Other 118 29 2-4
Potatoes and products 118 77 1-1.2
Butter, Ghee 12 88 3-4
Groundnuts (Shelled Eq) 6 20 9-15
Pulses, Other and products 0 0 3.5-4
Egg (price per 10 eggs) 17 24 1.3-1.7
Fish products 65 48 11-15
Beer (0.5 liter/pint) 144 71 3.4-4
Sweeteners, Other 6 16 1-1.2
Beans 0 0 3-4
Sweet potatoes 1 1 4-4.2
Bananas 24 15 1.2-1.5
Soyabeans 0 0 4-6
Yams 0 0 4-5
Apples and products 31 9 1.6-2
Tomatoes and products 30 6 2-3
Onions 11 5 1-1.4
Oranges, Mandarines 56 12 -
Plantains 0 0 2-2
Peas 2 7 4-4
Roots, Other 0 0 1.5-2
Seeds and kernels 0 3 8-15
Wine (bottle) 21 14 12-13
Pineapples and products 7 5 -
Cream 10 20 3-5
Olives (including preserved) 1 1 4.8-5
Honey 1 3 -
Citrus, Other 1 0 2-3
Lemons, Limes and products 2 0 2.5-3
Tea (including mate) 1 0 4-8
Grapefruit and products 1 0 2.8-3.9
Coffee and products 22 10 3.9-4.5

 

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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