Living Wage Series - Indonesia - September 2019 - In Rupiah, 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 IDR)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 1527000-1961300 1388200-1783000 347000-445700
Housing expenses 900000-1050000 900000-1050000 577100-677800
Transport expenses 300000-410000 300000-410000 150000-205000
Healthcare expenses 200000-240000 200000-240000 50000-60000
Education expenses 350000-500000 350000-500000 0
Other expenses 163900-208100 156900-199200 56200-69400
Total Expenditure 3440900-4369400 3295100-4182200 1180300-1457900
Net Living Wage 2024059-2570235 1830611-2323445 1180300-1457900
Gross Living Wage 2267000-2878700 2050300-2602300 1321900-1632900

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in IDR)

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 + 2.4 children, 1.7 working) 2267000-2878700
Standard family (two parents + 2 children, 1.8 working) 2050300-2602300
Two parents and two children, 2 working 1845300-2342000
Two parents and two children, 1.5 working 2460300-3122700
Two parents and two children, 1 working 3690500-4684100
Two parents and three children, 1.7 working 2411000-3063600
Two parents and four children, 1.7 working 2651000-3371900
Single-adult without children, 1 working 1321900-1632900

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in IDR)

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 1210000 1337645 1454154 1570922
Living Wage - Single Adult 1104900-1417600 1124200-1578400 1113100-1444600 1321900-1632900
Living Wage - Typical Family 2018400-2645100 2056300-2816200 2068100-2692900 2267000-2878700
Real wage of low-skilled worker 2097600-3035200 2093900-3025600 2381100-3360000 2437000-3419100
Real wage of medium-skilled worker 2585900-3584100 2654500-3668100 2919700-3939600 3055000-4118400
Real wage of high-skilled worker 3075900-4588900 3189900-4743900 3425900-4966700 3613700-5226800

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 IDR

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 54 142 20000-24500
Rice 284 1024 9000-10000
Meat (beef, pork, poultry) 32 59 35000-50000
Oils (soyabean, olive, palm) 22 190 10000-11000
Sugar (Raw Equivalent) 33 116 12000-12000
Maize and products 75 184 16000-32000
Milk - Excluding Butter 31 15 14000-17000
Vegetables, Other 70 24 7500-10000
Potatoes and products 9 6 9000-12000
Butter, Ghee 1 7 29000-35000
Groundnuts (Shelled Eq) 49 86 20000-26000
Pulses, Other and products 0 1 10000-32000
Cassava and products 99 102 4000-6500
Egg (price per 10 eggs) 10 15 12500-15000
Sunflowerseed Oil 0 1 -
Fish products 59 44 30000-50000
Beer (0.5 liter/pint) 2 1 50000-70000
Sweeteners, Other 3 11 12000-13000
Beans 2 7 11000-24300
Sweet potatoes 16 16 5000-6000
Bananas 40 25 10000-15000
Soyabeans 2 8 9000-13000
Apples and products 1 1 25000-30000
Tomatoes and products 8 2 7000-10000
Onions 8 3 15000-20000
Oranges, Mandarines 12 3 15000-20000
Peas 0 0 12000-20000
Roots, Other 3 4 8000-10000
Seeds and kernels 0 1 20000-25000
Wine (bottle) 0 0 81300-110000
Pineapples and products 12 3 7000-8420
Cream 0 0 20000-35000
Olives (including preserved) 0 0 30000-36000
Honey 0 0 120000-150000
Lemons, Limes and products 0 0 12000-12800
Tea (including mate) 1 0 12000-20000
Grapefruit and products 0 0 15000-20000
Coffee and products 0 0 15000-25000

 

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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