Living Wage Series - Madagascar - September 2019 - In Malagasy Ariary, 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 MGA)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 340200-439500 219500-283500 54900-70900
Housing expenses 250000-400000 250000-400000 117800-185500
Transport expenses 40000-60000 40000-60000 20000-30000
Healthcare expenses 50000-77500 50000-77500 12500-19400
Education expenses 50000-100000 50000-100000 0
Other expenses 36500-53900 30500-46100 10300-15300
Total Expenditure 766700-1130900 640000-967100 215500-321075
Net Living Wage 403526-595211 355556-537278 215500-321075
Gross Living Wage 443900-654700 391100-591000 237100-353200

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in MGA)

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 + 4.2 children, 1.9 working) 443900-654700
Standard family (two parents + 2 children, 1.8 working) 391100-591000
Two parents and two children, 2 working 352000-531900
Two parents and two children, 1.5 working 469300-709200
Two parents and two children, 1 working 704000-1063800
Two parents and three children, 1.9 working 403900-603000
Two parents and four children, 1.9 working 437200-646100
Single-adult without children, 1 working 237100-353200

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in MGA)

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 144003 155523 155523 155523
Living Wage - Single Adult - - - 237100-353200
Living Wage - Typical Family - - - 443900-654700
Real wage of low-skilled worker 249600-286600 252600-291200 272100-322600 266200-322900
Real wage of medium-skilled worker 323000-459100 323500-461200 359900-526100 332300-501600
Real wage of high-skilled worker 537600-834500 542600-836500 598200-939300 570400-931300

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 MGA

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 26 72 1400-2000
Rice 293 1085 1400-1500
Meat (beef, pork, poultry) 46 89 9000-12000
Oils (soyabean, olive, palm) 6 56 4000-4500
Sugar (Raw Equivalent) 33 73 2200-2800
Maize and products 51 152 1200-2800
Milk - Excluding Butter 71 45 1800-2200
Vegetables, Other 43 10 1600-3000
Potatoes and products 16 11 1200-2000
Butter, Ghee 1 9 16000-18000
Groundnuts (Shelled Eq) 5 8 3600-4400
Pulses, Other and products 1 4 2500-3100
Cassava and products 354 316 600-1100
Egg (price per 10 eggs) 2 3 4000-4500
Sunflowerseed Oil 0 2 5000-6250
Fish products 13 9 8000-10000
Beer (0.5 liter/pint) 14 6 4400-5000
Sweeteners, Other 1 1 -
Beans 9 29 2800-3000
Sweet potatoes 62 59 800-1000
Bananas 40 24 1000-1200
Soyabeans 0 0 3000-4000
Apples and products 1 0 1600-2200
Tomatoes and products 4 1 1500-3000
Onions 1 0 2000-2800
Oranges, Mandarines 11 3 2250-3500
Peas 2 6 2500-3000
Roots, Other 15 14 1500-1750
Seeds and kernels 0 0 9000-10000
Wine (bottle) 1 1 16000-17300
Pineapples and products 9 3 -
Cream 0 0 5600-12000
Honey 1 2 -
Citrus, Other 0 0 2000-2000
Lemons, Limes and products 1 0 4000-4000
Tea (including mate) 0 0 5600-6000
Grapefruit and products 1 0 2000-3000
Coffee and products 6 3 -

 

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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