Living Wage Series - Honduras - December 2018 - In Lempira, 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 Lempira)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 3430-4820 3050-4280 760-1070
Housing 3000-5000 3000-5000 1820-2660
Transport 600-1170 600-1170 300-585
Health 1000-1100 1000-1100 250-275
Education 700-1500 700-1500 0
Other costs 435-680 415-655 155-230
Total Expenditure 9165-14270 8765-13705 3285-4820
Net Living Wage 5391-8394 4869-7614 3285-4820
Gross Living Wage 5820-9070 5260-8230 3550-5210

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Lempira)

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 + 2.5 children, 1.7 working) 5820-9070
Standard family (two parents + 2 children, 1.8 working) 5260-8230
Two parents and two children, 2 working 4740-7400
Two parents and two children, 1.5 working 6310-9870
Two parents and two children, 1 working 9470-14800
Two parents and three children, 1.7 working 6080-9420
Two parents and four children, 1.7 working 6590-10100
Single-adult without children, 1 working 3550-5210

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Lempira)

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 5386 5682 5870 6097
Living Wage - Single Adult - - - 3550-5210
Living Wage - Typical Family - - - 5820-9070
Real wage of low-skilled worker 5560-6990 6030-7610 7000-8500 7500-9540
Real wage of medium-skilled worker 7580-9420 8100-10100 8910-10700 8720-10800
Real wage of high-skilled worker 10300-15000 10900-15800 12000-16800 11900-17100

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.

Honduras Graph

Food basket and food prices in Lempira

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 92 264 30-48
Rice 32 110 12-22
Meat (beef, pork, poultry) 79 123 52-76
Oils (soyabean, olive, palm) 27 234 25-34
Sugar (Raw Equivalent) 94 335 20-25
Maize and products 174 598 15-25
Milk - Excluding Butter 204 118 21-22
Vegetables, Other 71 15 20-30
Potatoes and products 12 7 12-20
Butter, Ghee 5 35 45-80
Groundnuts (Shelled Eq) 5 8 70-100
Pulses, Other and products 0 0 35-50
Cassava and products 6 6 15-20
Egg (price per 10 eggs) 12 15 30-32
Sunflowerseed Oil 0 2 55-89
Fish products 9 5 55-100
Beer (0.5 liter/pint) 36 13 40-60
Sweeteners, Other 14 33 25-25
Beans 27 91 30-40
Sweet potatoes 0 0 18-20
Bananas 55 34 10-15
Soyabeans 0 0 50-55
Apples and products 9 2 25-34
Tomatoes and products 27 7 18-20
Onions 6 2 15-24
Oranges, Mandarines 43 11 10-20
Plantains 26 22 15-20
Peas 0 0 40-80
Roots, Other 1 1 15-20
Seeds and kernels 0 2 50-80
Wine (bottle) 1 0 133-160
Pineapples and products 5 2 -
Cream 0 0 40-60
Olives (including preserved) 0 0 50-80
Honey 0 0 63-100
Citrus, Other 0 0 15-20
Lemons, Limes and products 2 0 18-20
Tea (including mate) 0 0 34-50
Grapefruit and products 8 2 20-30
Coffee and products 6 2 40-50

 

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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