Living Wage Series - Portugal - December 2018 - In Euro, 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 Euro)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 290-390 350-475 88-120
Housing 450-615 450-615 275-355
Transport 72-90 72-90 36-45
Health 30-50 30-50 8-13
Education 80-100 80-100 0
Other costs 46-62 49-67 20-27
Total Expenditure 968-1307 1031-1397 427-560
Net Living Wage 605-817 573-776 427-560
Gross Living Wage 725-980 685-930 510-670

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Euro)

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 + 1.3 children, 1.6 working) 725-980
Standard family (two parents + 2 children, 1.8 working) 685-930
Two parents and two children, 2 working 620-840
Two parents and two children, 1.5 working 825-1120
Two parents and two children, 1 working 1240-1680
Two parents and three children, 1.6 working 845-1140
Two parents and four children, 1.6 working 910-1240
Single-adult without children, 1 working 510-670

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Euro)

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 589 618 650 677
Living Wage - Single Adult 405-515 410-540 480-650 510-670
Living Wage - Typical Family 625-835 615-840 695-955 725-980
Real wage of low-skilled worker 575-685 570-645 590-660 625-705
Real wage of medium-skilled worker 710-925 675-835 725-900 750-940
Real wage of high-skilled worker 925-1370 905-1300 970-1410 1010-1460

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.

Portugal Graph

Food basket and food prices in Euro

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 178 476 1.8-2
Rice 26 97 .7-.9
Meat (beef, pork, poultry) 163 253 4-6
Oils (soyabean, olive, palm) 27 234 1-1.2
Sugar (Raw Equivalent) 41 146 1-2
Maize and products 31 84 2-2
Milk - Excluding Butter 359 161 .5-.6
Vegetables, Other 201 47 1-1.8
Potatoes and products 122 78 .6-1
Butter, Ghee 20 147 4.2-6
Groundnuts (Shelled Eq) 8 18 4-6
Pulses, Other and products 3 10 2-3
Egg (price per 10 eggs) 16 22 .8-1.3
Sunflowerseed Oil 8 66 1-1.3
Fish products 94 52 6-8
Beer (0.5 liter/pint) 80 40 2-2.4
Sweeteners, Other 7 14 .7-1
Beans 3 10 1-2
Sweet potatoes 1 1 1.2-2
Bananas 22 13 1-1
Soyabeans 0 0 3-4
Yams 0 0 1-2
Apples and products 46 22 1-1
Tomatoes and products 38 7 1-1.2
Onions 27 10 .7-1
Oranges, Mandarines 66 17 1-1.1
Plantains 1 1 1-1.5
Peas 1 3 1-2
Seeds and kernels 0 1 4-5
Wine (bottle) 71 49 2.7-2.7
Pineapples and products 9 4 1-2
Cream 3 6 2-4
Olives (including preserved) 2 3 3-4
Honey 2 4 1-3
Citrus, Other 0 0 .8-1
Lemons, Limes and products 4 1 1-1.2
Tea (including mate) 0 0 1-2
Grapefruit and products 2 0 1.5-2
Coffee and products 9 4 4-6

 

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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