Living Wage Series - Honduras - September 2019 - In HNL, 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 HNL)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 3450-4860 3070-4320 765-1080
Housing expenses 3500-5000 3500-5000 1860-2860
Transport expenses 1000-1200 1000-1200 500-600
Healthcare expenses 1000-1100 1000-1100 250-275
Education expenses 800-1500 800-1500 0
Other expenses 485-685 470-655 170-240
Total Expenditure 10235-14345 9840-13775 3545-5055
Net Living Wage 6021-8438 5467-7653 3545-5055
Gross Living Wage 6500-9120 5910-8270 3830-5460

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in HNL)

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) 6500-9120
Standard family (two parents + 2 children, 1.8 working) 5910-8270
Two parents and two children, 2 working 5320-7440
Two parents and two children, 1.5 working 7090-9920
Two parents and two children, 1 working 10600-14900
Two parents and three children, 1.7 working 6760-9470
Two parents and four children, 1.7 working 7270-10200
Single-adult without children, 1 working 3830-5460

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in HNL)

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 5682 5870 6097 6440
Living Wage - Single Adult - - - 3830-5460
Living Wage - Typical Family - - - 6500-9120
Real wage of low-skilled worker 7280-9530 8010-10300 8360-10700 8780-10700
Real wage of medium-skilled worker 8110-10300 8630-10700 8860-11000 9220-10700
Real wage of high-skilled worker 10700-15400 11400-16100 11900-16800 12400-16500

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 HNL

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 92 265 25-40
Rice 32 110 13-24
Meat (beef, pork, poultry) 79 123 65-90
Oils (soyabean, olive, palm) 27 234 -
Sugar (Raw Equivalent) 94 336 25-25
Maize and products 174 599 15-20
Milk - Excluding Butter 204 118 18-21
Vegetables, Other 71 15 20-30
Potatoes and products 12 7 20-25
Butter, Ghee 5 35 52-75
Groundnuts (Shelled Eq) 5 8 100-100
Pulses, Other and products 0 0 20-50
Cassava and products 6 6 24-25
Egg (price per 10 eggs) 12 15 25-30
Sunflowerseed Oil 0 2 -
Fish products 9 5 70-100
Beer (0.5 liter/pint) 36 13 36-60
Sweeteners, Other 14 33 25-26
Beans 27 91 20-30
Sweet potatoes 0 0 12-20
Bananas 55 34 10-15
Soyabeans 0 0 25-50
Apples and products 9 2 20-32
Tomatoes and products 27 7 19-20
Onions 6 2 15-20
Oranges, Mandarines 43 11 5-15
Plantains 26 22 15-20
Peas 0 0 30-80
Roots, Other 1 1 16-20
Seeds and kernels 0 2 100-100
Wine (bottle) 1 0 133-133
Pineapples and products 5 2 -
Cream 0 0 33-49
Olives (including preserved) 0 0 42-60
Citrus, Other 0 0 10-10
Lemons, Limes and products 2 0 20-20
Tea (including mate) 0 0 25-34
Grapefruit and products 8 2 20-35
Coffee and products 6 2 40-45

 

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). Estimating 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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