Living Wage Series - Peru - September 2019 - In PEN, 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 PEN)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 625-810 565-735 140-185
Housing expenses 600-850 600-850 300-410
Transport expenses 100-200 100-200 50-100
Healthcare expenses 100-200 100-200 25-50
Education expenses 300-500 300-500 0
Other expenses 86-130 83-125 26-37
Total Expenditure 1811-2690 1748-2610 541-782
Net Living Wage 1006-1494 971-1450 541-782
Gross Living Wage 1170-1740 1130-1680 630-905

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in PEN)

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 + 2.4 children, 1.8 working) 1170-1740
Standard family (two parents + 2 children, 1.8 working) 1130-1680
Two parents and two children, 2 working 1020-1520
Two parents and two children, 1.5 working 1350-2020
Two parents and two children, 1 working 2030-3030
Two parents and three children, 1.8 working 1230-1810
Two parents and four children, 1.8 working 1320-1940
Single-adult without children, 1 working 630-905

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in PEN)

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 750 850 850 930
Living Wage - Single Adult - - - 630-905
Living Wage - Typical Family - - - 1170-1740
Real wage of low-skilled worker 1010-1420 1090-1470 1030-1380 1080-1490
Real wage of medium-skilled worker 1330-2000 1470-2130 1320-1890 1420-2090
Real wage of high-skilled worker 2300-3840 2470-3960 2230-3540 2340-3810

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.

604_Peru

Food basket and food prices in PEN

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 136 326 2-4
Rice 109 422 2.7-3
Meat (beef, pork, poultry) 62 94 9-14
Oils (soyabean, olive, palm) 15 131 4.8-6
Sugar (Raw Equivalent) 48 170 2.8-3.5
Maize and products 43 150 2-3.5
Milk - Excluding Butter 151 91 3-3.8
Vegetables, Other 100 33 2-2
Potatoes and products 201 197 1.2-1.5
Butter, Ghee 2 13 6-10
Groundnuts (Shelled Eq) 4 14 3-4
Pulses, Other and products 11 36 4.5-4.5
Cassava and products 64 103 1.5-2
Egg (price per 10 eggs) 21 28 3.3-3.3
Sunflowerseed Oil 1 7 -
Fish products 54 38 14-15
Beer (0.5 liter/pint) 105 37 8.5-10.5
Sweeteners, Other 4 13 2.8-2.8
Beans 5 15 4-5
Sweet potatoes 16 18 2-3
Bananas 7 4 2-2
Soyabeans 4 14 2-5
Apples and products 14 7 4-4
Tomatoes and products 13 2 1.2-2
Onions 38 16 2-4
Oranges, Mandarines 40 15 2-3
Plantains 96 80 2-3
Peas 5 17 2-4
Roots, Other 17 11 3-4
Seeds and kernels 0 0 5-7.5
Wine (bottle) 6 4 20-23
Pineapples and products 28 11 -
Cream 0 0 6-11
Olives (including preserved) 6 15 4-6
Citrus, Other 3 1 4-4
Lemons, Limes and products 12 3 2-3
Tea (including mate) 0 0 5-10
Grapefruit and products 0 0 2-2
Coffee and products 1 1 7-10

 

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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