Living Wage Series - Luxembourg - September 2019 - 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 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 EUR)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 765-965 875-1100 220-275
Housing expenses 1020-1430 1020-1430 600-810
Transport expenses 50-60 50-60 25-30
Healthcare expenses 115-315 115-315 29-79
Education expenses 110-380 110-380 0
Other expenses 105-160 110-165 44-60
Total Expenditure 2165-3310 2280-3450 918-1254
Net Living Wage 1353-2069 1267-1917 918-1254
Gross Living Wage 1650-2530 1550-2340 1120-1530

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in EUR)

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 + 1.5 children, 1.6 working) 1650-2530
Standard family (two parents + 2 children, 1.8 working) 1550-2340
Two parents and two children, 2 working 1390-2110
Two parents and two children, 1.5 working 1860-2810
Two parents and two children, 1 working 2780-4210
Two parents and three children, 1.6 working 1920-2860
Two parents and four children, 1.6 working 2100-3080
Single-adult without children, 1 working 1120-1530

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in EUR)

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 1923 1999 1999 2071
Living Wage - Single Adult - - 1030-1380 1120-1530
Living Wage - Typical Family - - 1550-2360 1650-2530
Real wage of low-skilled worker 1840-1960 1790-1900 1860-1980 1920-2030
Real wage of medium-skilled worker 2280-2710 2270-2700 2340-2800 2360-2810
Real wage of high-skilled worker 3410-4320 3350-4270 3450-4410 3540-4510

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.

442_Luxembourg

Food basket and food prices in EUR

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
Rice 18 69 1.1-1.5
Meat (beef, pork, poultry) 441 930 10-12
Milk - Excluding Butter 1099 580 1-1.2
Vegetables, Other 345 112 1-1.4
Potatoes and products 240 145 1-1.5
Egg (price per 10 eggs) 63 86 19-30
Bananas 31 19 1.2-2
Apples and products 112 36 1.7-2
Tomatoes and products 97 17 1.4-2
Onions 21 6 1.1-1.9
Oranges, Mandarines 451 75 1.6-2.1
Cream 13 25 9.9-15

 

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).  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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