Living Wage Series - Paraguay - September 2019 - In Guarani, 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 PYG)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 1077900-1443400 958100-1283000 239500-320800
Housing expenses 1000000-1500000 1000000-1500000 539800-771700
Transport expenses 229200-344400 229200-344400 114600-172200
Healthcare expenses 200000-300000 200000-300000 50000-75000
Education expenses 240000-400000 240000-400000 0
Other expenses 137400-199400 131400-191400 47200-67000
Total Expenditure 2884500-4187200 2758700-4018800 991100-1406700
Net Living Wage 1696765-2463059 1532611-2232667 991100-1406700
Gross Living Wage 1866400-2709400 1685900-2455900 1090200-1547400

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in PYG)

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 + 2.5 children, 1.7 working) 1866400-2709400
Standard family (two parents + 2 children, 1.8 working) 1685900-2455900
Two parents and two children, 2 working 1517300-2210300
Two parents and two children, 1.5 working 2023100-2947100
Two parents and two children, 1 working 3034600-4420700
Two parents and three children, 1.7 working 1947800-2818300
Two parents and four children, 1.7 working 2110500-3036300
Single-adult without children, 1 working 1090200-1547400

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in PYG)

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 1824055 1964507 2041123 2112562
Living Wage - Single Adult - - 1021600-1440900 1090200-1547400
Living Wage - Typical Family - - 1787600-2584000 1866400-2709400
Real wage of low-skilled worker 2022300-2530800 2191700-2785200 2307100-2861600 2265400-2774400
Real wage of medium-skilled worker 2071500-2601100 2243300-2845800 2413900-3019300 2410200-3006300
Real wage of high-skilled worker 2823000-4290700 3068400-4730700 3217100-4817000 3263700-4908700

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.

600_Paraguay

Food basket and food prices in PYG

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 73 189 5000-7000
Rice 11 42 3100-4000
Meat (beef, pork, poultry) 132 211 18000-26000
Oils (soyabean, olive, palm) 26 224 7000-10000
Sugar (Raw Equivalent) 55 201 5000-5500
Maize and products 136 460 8000-10000
Milk - Excluding Butter 172 110 4000-4800
Vegetables, Other 66 14 4200-6200
Potatoes and products 7 4 4500-5000
Butter, Ghee 11 78 16000-24000
Groundnuts (Shelled Eq) 4 20 -
Pulses, Other and products 5 16 5000-7000
Cassava and products 283 242 2000-2650
Egg (price per 10 eggs) 43 56 5830-6670
Sunflowerseed Oil 4 37 9500-12000
Fish products 8 6 30000-30000
Beer (0.5 liter/pint) 79 39 10000-14000
Sweeteners, Other 2 4 4000-6000
Beans 12 39 5000-8000
Sweet potatoes 13 11 4500-5000
Bananas 11 7 3000-5000
Soyabeans 0 0 8000-9600
Apples and products 3 1 6000-9000
Tomatoes and products 24 6 6990-8000
Onions 9 3 4500-6000
Oranges, Mandarines 92 25 5000-6000
Peas 2 6 6000-8000
Roots, Other 0 0 5000-6000
Seeds and kernels 6 30 12000-15000
Wine (bottle) 7 5 20200-26700
Pineapples and products 19 7 -
Cream 0 0 7500-16000
Olives (including preserved) 0 0 15600-30000
Honey 1 2 15000-35000
Citrus, Other 0 0 6000-7000
Lemons, Limes and products 3 1 3000-5000
Tea (including mate) 27 11 6500-13000
Grapefruit and products 4 1 5000-6000
Coffee and products 1 0 10000-19000

 

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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