Living Wage Series - Mozambique - December 2018 - In Mozambique Metical, 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 Mozambique Metical)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 7600-10300 4110-5540 1030-1390
Housing 3600-8000 3600-8000 2400-5000
Transport 420-840 420-840 210-420
Health 650-1000 650-1000 165-250
Education 1250-2750 1250-2750 0
Other costs 675-1140 500-905 190-355
Total Expenditure 14195-24030 10530-19035 3993-7415
Net Living Wage 7886-13350 5850-10575 3993-7415
Gross Living Wage 8280-14000 6140-11100 4190-7790

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Mozambique Metical)

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 + 5.4 children, 1.8 working) 8280-14000
Standard family (two parents + 2 children, 1.8 working) 6140-11100
Two parents and two children, 2 working 5530-10000
Two parents and two children, 1.5 working 7370-13300
Two parents and two children, 1 working 11100-20000
Two parents and three children, 1.8 working 6770-12000
Two parents and four children, 1.8 working 7400-12800
Single-adult without children, 1 working 4190-7790

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Mozambique Metical)

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 3196 3298 3298 4063
Living Wage - Single Adult - - - 4200-7790
Living Wage - Typical Family - - - 8280-14000
Real wage of low-skilled worker 4310-5720 4990-6750 5800-7260 5430-6300
Real wage of medium-skilled worker 7400-13300 8160-14800 9370-16000 8970-14400
Real wage of high-skilled worker 11300-22500 12800-24900 14600-27300 13300-23500

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.

Mozambique Graph

Food basket and food prices in Mozambique Metical

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 69 189 14-30
Rice 59 214 26-32
Meat (beef, pork, poultry) 23 64 130-150
Oils (soyabean, olive, palm) 21 183 80-100
Sugar (Raw Equivalent) 30 101 50-70
Maize and products 138 406 20-30
Milk - Excluding Butter 12 7 55-70
Vegetables, Other 18 4 40-60
Potatoes and products 20 15 25-35
Butter, Ghee 1 6 130-180
Groundnuts (Shelled Eq) 8 19 50-60
Pulses, Other and products 22 75 30-50
Cassava and products 574 625 20-25
Egg (price per 10 eggs) 4 6 46-50
Sunflowerseed Oil 1 13 78-100
Fish products 20 12 87-150
Beer (0.5 liter/pint) 14 6 90-106
Sweeteners, Other 0 1 35-40
Beans 13 45 45-50
Sweet potatoes 79 76 20-30
Bananas 34 20 25-40
Soyabeans 0 0 30-35
Apples and products 0 0 50-80
Tomatoes and products 21 5 30-40
Onions 8 3 30-35
Oranges, Mandarines 5 1 50-50
Roots, Other 1 1 30-45
Seeds and kernels 0 0 50-75
Wine (bottle) 1 1 200-267
Pineapples and products 5 2 -
Cream 0 0 80-120
Olives (including preserved) 0 0 120-160
Honey 0 0 100-100
Citrus, Other 0 0 50-60
Lemons, Limes and products 0 0 25-45
Tea (including mate) 2 1 50-100
Grapefruit and products 1 0 75-120
Coffee and products 0 0 90-130

 

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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