Living Wage Series - Romania - September 2019- In New Romanian Leu, 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 RON)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 1110-1450 1230-1610 305-400
Housing expenses 625-940 625-940 375-565
Transport expenses 100-140 100-140 50-70
Healthcare expenses 100-200 100-200 25-50
Education expenses 150-200 150-200 0
Other expenses 105-145 110-155 38-54
Total Expenditure 2190-3075 2315-3245 793-1139
Net Living Wage 1460-2050 1286-1803 793-1139
Gross Living Wage 2000-2810 1760-2470 1090-1560

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in RON)

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 + 1.6 children, 1.5 working) 2000-2810
Standard family (two parents + 2 children, 1.8 working) 1760-2470
Two parents and two children, 2 working 1590-2230
Two parents and two children, 1.5 working 2120-2970
Two parents and two children, 1 working 3170-4450
Two parents and three children, 1.5 working 2410-3350
Two parents and four children, 1.5 working 2700-3730
Single-adult without children, 1 working 1090-1560

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in RON)

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 1050 1250 1900 2080
Living Wage - Single Adult 950-1360 1010-1460 1070-1500 1090-1560
Living Wage - Typical Family 1820-2560 1910-2680 1970-2740 2000-2810
Real wage of low-skilled worker 1370-1750 1740-2120 2230-2750 2200-2700
Real wage of medium-skilled worker 1370-1790 1800-2250 2250-2850 2190-2760
Real wage of high-skilled worker 1770-2520 2270-3080 2850-3900 2800-3830

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.

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Food basket and food prices in RON

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 250 671 2-4
Rice 5 16 3-4
Meat (beef, pork, poultry) 93 141 16-20
Oils (soyabean, olive, palm) 4 36 3.5-4.9
Sugar (Raw Equivalent) 40 143 3-4
Maize and products 72 203 7.4-10
Milk - Excluding Butter 430 284 3-4
Vegetables, Other 213 49 2-3
Potatoes and products 177 117 2-2
Butter, Ghee 7 53 20-24
Groundnuts (Shelled Eq) 4 10 15-20
Pulses, Other and products 0 1 5-10
Egg (price per 10 eggs) 23 32 60-72
Sunflowerseed Oil 19 170 5-6
Fish products 11 8 10-24
Beer (0.5 liter/pint) 143 70 5.4-6
Sweeteners, Other 4 14 -
Beans 3 11 8-9
Sweet potatoes 0 0 7-9
Bananas 3 2 4.5-5
Apples and products 39 19 3-3
Tomatoes and products 71 13 4-5
Onions 35 14 2-2
Oranges, Mandarines 14 4 3.5-4
Plantains 4 3 -
Peas 0 1 6.7-8
Roots, Other 0 0 2-2.5
Seeds and kernels 0 2 10-16
Wine (bottle) 37 26 19-20
Pineapples and products 1 1 -
Cream 0 0 15-20
Olives (including preserved) 2 3 15-18
Honey 1 4 20-25
Lemons, Limes and products 3 1 5-6
Tea (including mate) 0 0 20-25
Grapefruit and products 2 1 -
Coffee and products 4 2 26-31

 

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). 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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