Living Wage Series - Mozambique - September 2019 - 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 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 MZN)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 7620-10200 4180-5600 1050-1400
Housing expenses 4500-8340 4500-8340 2380-5000
Transport expenses 420-840 420-840 210-420
Healthcare expenses 650-1000 650-1000 165-250
Education expenses 1500-3000 1500-3000 0
Other expenses 735-1170 560-940 190-355
Total Expenditure 15425-24550 11810-19720 3993-7425
Net Living Wage 8569-13639 6561-10956 3993-7425
Gross Living Wage 9000-14300 6890-11500 4190-7800

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in MZN)

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 + 5.3 children, 1.8 working) 9000-14300
Standard family (two parents + 2 children, 1.8 working) 6890-11500
Two parents and two children, 2 working 6200-10400
Two parents and two children, 1.5 working 8270-13800
Two parents and two children, 1 working 12400-20700
Two parents and three children, 1.8 working 7530-12400
Two parents and four children, 1.8 working 8170-13200
Single-adult without children, 1 working 4190-7800

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in MZN)

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 3298 3298 3642 4150
Living Wage - Single Adult - - - 4200-7800
Living Wage - Typical Family - - - 9000-14300
Real wage of low-skilled worker 5350-7390 6650-8570 6250-7470 6560-8360
Real wage of medium-skilled worker 7870-14700 9020-15800 9130-15000 9400-16600
Real wage of high-skilled worker 12700-24700 14900-27100 14200-24200 15300-28000

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 MZN

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 25-32
Meat (beef, pork, poultry) 23 64 120-150
Oils (soyabean, olive, palm) 21 183 83-100
Sugar (Raw Equivalent) 30 101 55-70
Maize and products 138 406 20-25
Milk - Excluding Butter 12 7 65-80
Vegetables, Other 18 4 40-50
Potatoes and products 20 15 25-35
Butter, Ghee 1 6 155-200
Groundnuts (Shelled Eq) 8 19 60-80
Pulses, Other and products 22 75 50-75
Cassava and products 574 625 20-20
Egg (price per 10 eggs) 4 6 50-58
Sunflowerseed Oil 1 13 75-80
Fish products 20 12 75-150
Beer (0.5 liter/pint) 14 6 90-110
Sweeteners, Other 0 1 35-45
Beans 13 45 45-50
Sweet potatoes 79 76 20-35
Bananas 34 20 30-40
Soyabeans 0 0 34-50
Apples and products 0 0 50-65
Tomatoes and products 21 5 30-40
Onions 8 3 20-30
Oranges, Mandarines 5 1 50-63
Roots, Other 1 1 35-45
Seeds and kernels 0 0 75-80
Wine (bottle) 1 1 200-240
Pineapples and products 5 2 -
Cream 0 0 85-120
Olives (including preserved) 0 0 120-180
Honey 0 0 100-115
Citrus, Other 0 0 50-65
Lemons, Limes and products 0 0 25-50
Tea (including mate) 2 1 65-105
Grapefruit and products 1 0 75-150
Coffee and products 0 0 90-120

 

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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