Living Wage Series - Pakistan - December 2018 - In Pakistan Rupee, 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 Pakistan Rupee)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 16900-19500 11800-13700 2960-3420
Housing 10000-20000 10000-20000 4000-8000
Transport 1000-1800 1000-1800 500-900
Health 600-1000 600-1000 150-250
Education 500-1000 500-1000 0
Other costs 1450-2170 1200-1880 380-630
Total Expenditure 30450-45470 25100-39380 7990-13200
Net Living Wage 19031-28419 13944-21878 7990-13200
Gross Living Wage 20800-31000 15200-23900 8710-14400

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Pakistan Rupee)

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 + 3.7 children, 1.6 working) 20800-31000
Standard family (two parents + 2 children, 1.8 working) 15200-23900
Two parents and two children, 2 working 13700-21500
Two parents and two children, 1.5 working 18200-28600
Two parents and two children, 1 working 27400-42900
Two parents and three children, 1.6 working 19300-29300
Two parents and four children, 1.6 working 21400-31700
Single-adult without children, 1 working 8710-14400

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Pakistan Rupee)

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 9000 10000 14000 15000
Living Wage - Single Adult 7180-12000 7850-14300 8700-14300 8710-14400
Living Wage - Typical Family 17800-27100 18900-30800 20700-30900 20800-31000
Real wage of low-skilled worker 19300-23000 16400-19300 20200-24700 19500-23000
Real wage of medium-skilled worker 19100-27600 18500-27500 22300-33600 21800-31300
Real wage of high-skilled worker 29300-44800 27100-42600 33000-52600 33600-50800

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.

Pakistan Graph

Food basket and food prices in Pakistan Rupee

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 276 802 80-100
Rice 29 109 80-100
Meat (beef, pork, poultry) 44 67 280-350
Oils (soyabean, olive, palm) 27 213 125-130
Sugar (Raw Equivalent) 111 248 58-60
Maize and products 35 113 60-80
Milk - Excluding Butter 439 281 80-84
Vegetables, Other 32 8 35-45
Potatoes and products 37 25 25-30
Butter, Ghee 12 103 100-110
Groundnuts (Shelled Eq) 3 6 140-150
Pulses, Other and products 11 37 115-130
Cassava and products 0 0 50-113
Egg (price per 10 eggs) 7 10 75-83
Sunflowerseed Oil 2 17 160-160
Fish products 5 4 290-400
Beer (0.5 liter/pint) 0 0 300-303
Sweeteners, Other 0 1 60-60
Beans 2 9 120-125
Sweet potatoes 0 0 20-25
Bananas 0 0 33-50
Soyabeans 0 0 100-125
Apples and products 7 4 70-100
Tomatoes and products 11 2 50-80
Onions 20 9 30-50
Oranges, Mandarines 21 6 60-67
Peas 3 10 80-120
Roots, Other 6 6 30-35
Seeds and kernels 0 0 100-260
Wine (bottle) 0 0 267-400
Pineapples and products 0 0 150-289
Cream 0 0 100-250
Olives (including preserved) 4 11 685-800
Honey 0 0 560-650
Citrus, Other 0 0 60-100
Lemons, Limes and products 1 0 80-150
Tea (including mate) 2 1 675-730
Grapefruit and products 0 0 120-200
Coffee and products 0 0 2800-2920

 

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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