Living Wage Series - South Africa - December 2018 - In Rand, 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 Rand)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 3020-4080 2740-3710 685-925
Housing 4850-6680 4850-6680 2630-3820
Transport 700-1000 700-1000 350-500
Health 900-1500 900-1500 225-375
Education 1500-2000 1500-2000 0
Other costs 550-765 535-745 195-280
Total Expenditure 11520-16025 11225-15635 4085-5900
Net Living Wage 7200-10016 6236-8686 4085-5900
Gross Living Wage 8070-11200 6990-9730 4580-6610

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Rand)

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, 1.6 working) 8070-11200
Standard family (two parents + 2 children, 1.8 working) 6990-9730
Two parents and two children, 2 working 6290-8760
Two parents and two children, 1.5 working 8380-11700
Two parents and two children, 1 working 12600-17500
Two parents and three children, 1.6 working 8370-11600
Two parents and four children, 1.6 working 8870-12300
Single-adult without children, 1 working 4580-6610

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Rand)

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 1284 1284 2602 2602
Living Wage - Single Adult 4450-6200 4290-6120 4290-6140 4580-6610
Living Wage - Typical Family 7990-10800 7650-10600 7670-10700 8070-11200
Real wage of low-skilled worker 2740-3840 3040-4300 2800-4020 3190-4520
Real wage of medium-skilled worker 6000-9260 6270-9790 6310-9940 6810-10600
Real wage of high-skilled worker 12500-19100 13200-20300 13600-21100 14300-21900

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.

South Africa Graph

Food basket and food prices in Rand

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 122 364 20-25
Rice 34 120 14-19
Meat (beef, pork, poultry) 136 249 48-65
Oils (soyabean, olive, palm) 15 133 20-25
Sugar (Raw Equivalent) 69 227 15-23
Maize and products 195 611 13-20
Milk - Excluding Butter 109 61 10-12
Vegetables, Other 49 16 18-22
Potatoes and products 60 43 10-15
Butter, Ghee 1 9 30-40
Groundnuts (Shelled Eq) 3 11 30-50
Pulses, Other and products 0 1 20-30
Cassava and products 0 0 10-15
Egg (price per 10 eggs) 14 20 13-18
Sunflowerseed Oil 10 90 20-29
Fish products 12 9 50-75
Beer (0.5 liter/pint) 119 58 29-36
Sweeteners, Other 3 9 15-20
Beans 4 12 15-20
Sweet potatoes 2 2 12-15
Bananas 14 9 10-15
Soyabeans 2 9 15-23
Yams 0 0 14-20
Apples and products 22 6 15-19
Tomatoes and products 19 4 14-16
Onions 16 6 10-15
Oranges, Mandarines 14 4 15-20
Plantains 3 2 10-14
Peas 1 1 15-25
Roots, Other 0 0 10-15
Seeds and kernels 0 0 20-30
Wine (bottle) 15 10 47-64
Pineapples and products 2 1 11-15
Cream 0 0 26-56
Olives (including preserved) 0 0 40-60
Honey 0 1 40-60
Citrus, Other 0 0 10-15
Lemons, Limes and products 1 0 12-20
Tea (including mate) 1 0 18-30
Grapefruit and products 5 1 10-15
Coffee and products 2 1 55-78

 

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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