Living Wage Series - Nicaragua - December 2018 - In Cordoba Oro, 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 Cordoba Oro)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 3330-4570 3090-4260 775-1070
Housing 2710-4000 2710-4000 1920-2660
Transport 300-480 300-480 150-240
Health 500-1000 500-1000 125-250
Education 600-1200 600-1200 0
Other costs 370-565 360-545 150-210
Total Expenditure 7810-11815 7560-11485 3120-4430
Net Living Wage 4594-6950 4200-6381 3120-4430
Gross Living Wage 4960-7510 4540-6890 3370-4790

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Cordoba Oro)

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 + 2.3 children, 1.7 working) 4960-7510
Standard family (two parents + 2 children, 1.8 working) 4540-6890
Two parents and two children, 2 working 4080-6200
Two parents and two children, 1.5 working 5450-8270
Two parents and two children, 1 working 8170-12400
Two parents and three children, 1.7 working 5330-8010
Two parents and four children, 1.7 working 5840-8720
Single-adult without children, 1 working 3370-4790

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Cordoba Oro)

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 3014 3480 3774 3774
Living Wage - Single Adult - - - 3370-4790
Living Wage - Typical Family - - - 4960-7510
Real wage of low-skilled worker 4550-5830 4070-4940 4190-4960 4830-5770
Real wage of medium-skilled worker 5470-7340 6720-8770 5940-7570 6830-8770
Real wage of high-skilled worker 7730-12200 8710-13500 8470-12700 9460-14200

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.

Nicaragua Graph

Food basket and food prices in Cordoba Oro

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 70 198 24-40
Rice 96 327 14-25
Meat (beef, pork, poultry) 70 111 77-100
Oils (soyabean, olive, palm) 21 186 38-42
Sugar (Raw Equivalent) 84 305 20-25
Maize and products 153 522 10-18
Milk - Excluding Butter 190 113 22-25
Vegetables, Other 13 4 29-40
Potatoes and products 14 10 20-25
Butter, Ghee 2 19 40-80
Groundnuts (Shelled Eq) 7 31 70-70
Pulses, Other and products 0 0 38-40
Cassava and products 24 22 15-20
Egg (price per 10 eggs) 11 14 42-50
Sunflowerseed Oil 0 2 40-48
Fish products 11 7 80-140
Beer (0.5 liter/pint) 29 11 50-60
Sweeteners, Other 10 16 21-24
Beans 48 161 30-45
Sweet potatoes 0 0 20-30
Bananas 1 1 9-15
Soyabeans 0 0 30-50
Yams 0 0 25-60
Apples and products 33 6 40-60
Tomatoes and products 11 2 20-20
Onions 7 3 20-30
Oranges, Mandarines 13 2 20-30
Plantains 10 8 20-30
Peas 0 0 45-50
Roots, Other 11 10 20-40
Seeds and kernels 0 2 50-90
Wine (bottle) 0 0 200-327
Pineapples and products 20 6 -
Cream 0 0 44-75
Olives (including preserved) 0 0 300-300
Honey 0 0 60-100
Citrus, Other 0 0 35-70
Lemons, Limes and products 0 0 15-30
Tea (including mate) 0 0 200-220
Grapefruit and products 0 0 20-80
Coffee and products 0 0 100-120

 

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.

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