Living Wage Series - Paraguay - January 2018 - In Guarani, per Month

WageIndicator Living Wage Series - Wages in Context - Living Wages - 2018

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 Guarani)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 1083800-1408700 942500-1225000 235600-306200
Housing 900000-1250000 900000-1250000 436200-636200
Transport 250000-320000 250000-320000 125000-160000
Health 200000-300000 200000-300000 50000-75000
Education 200000-350000 200000-350000 0
Other costs 131700-181400 124600-172300 42300-58900
Total Expenditure 2765500-3810100 2617100-3617300 889100-1236300
Net Living Wage 1536389-2116722 1453945-2009611 889100-1236300
Gross Living Wage 1690000-2328400 1599300-2210600 978000-1359900

Note: For more details see Living Wage FAQ.

Family Living Wages (monthly rates in Guarani)

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.

Typical family (two parents + 2.6 children, 1.8 working) 1690000-2328400
Standard family (two parents + 2 children, 1.8 working) 1599300-2210600
Two parents and two children, 2 working 1439400-1989500
Two parents and two children, 1.5 working 1919200-2652700
Two parents and two children, 1 working 2878800-3979000
Two parents and three children, 1.8 working 1750500-2407100
Two parents and four children, 1.8 working 1901700-2603500
Single-adult without children, 1 working 978000-1359900

Note: Results in the table are rounded.

Living Wages in Context (monthly rates in Guarani)

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 1824055 1824055 2041123 2041123
Living Wage - Single Adult .-. .-. .-. 978000-1359900
Living Wage - Typical Family .-. .-. .-. 1690000-2328400
Real wage of low-skilled worker 1921100-2387400 1922400-2321400 2064300-2534400 2086300-2556000
Real wage of medium-skilled worker 2019600-2593300 2063400-2575800 2187100-2750900 2267400-2848200
Real wage of high-skilled worker 2874800-4421500 2967300-4454100 3083600-4632600 3239800-4886300

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.

Food basket and food prices in Guarani

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 itemGrams per dayEnergy (kcal)Price per kilo
Wheat, barley and cereals products 73 189 5000-7000
Rice 11 42 3100-4000
Meat (beef, pork, poultry) 132 210 16500-21000
Oils (soyabean, olive, palm) 26 224 7750-10000
Sugar (Raw Equivalent) 55 200 4800-6000
Maize and products 135 458 4000-5500
Milk - Excluding Butter 172 110 4000-4500
Vegetables, Other 66 14 5000-6000
Potatoes and products 7 4 4500-5000
Butter, Ghee 10 77 7000-10450
Groundnuts (Shelled Eq) 4 20 5000-6000
Pulses, Other and products 5 16 5000-7000
Cassava and products 281 240 1500-2500
Egg (price per 10 eggs) 43 56 5000-6380
Sunflowerseed Oil 4 37 9000-12750
Fish products 8 6 30000-35000
Beer 79 39 10000-13000
Sweeteners, Other 2 4 4800-6000
Beans 12 39 4000-5000
Sweet potatoes 13 11 4000-5000
Bananas 11 7 3000-4000
Soyabeans 0 0 5000-8000
Apples and products 3 1 6000-8000
Tomatoes and products 24 6 7000-8000
Onions 9 3 5000-6000
Oranges, Mandarines 92 25 4000-6000
Peas 2 6 3000-5000
Roots, Other 0 0 4000-5000
Seeds and kernels 6 30 10000-15000
Wine 7 5 20000-26700
Pineapples and products 19 7 .-.
Cream 0 0 7000-17000
Olives (including preserved) 0 0 15000-30000
Honey 1 2 20000-25000
Citrus, Other 0 0 5000-7000
Lemons, Limes and products 3 1 3400-5000
Tea (including mate) 27 11 6000-6500
Grapefruit and products 4 1 5000-6000
Coffee and products 1 0 12000-18000

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.