Living Wage Series - Tanzania - December 2018 - In Tanzanian Shilling, 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 Tanzanian Shilling)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 477900-618200 265500-343400 66400-85900
Housing 150000-200000 150000-200000 55900-116800
Transport 41600-60000 41600-60000 20800-30000
Health 80000-100000 80000-100000 20000-25000
Education 50000-100000 50000-100000 0
Other costs 40000-53900 29400-40200 8150-12900
Total Expenditure 839500-1132100 616500-843600 171250-270600
Net Living Wage 441842-595842 342500-468667 171250-270600
Gross Living Wage 565600-762700 438400-599900 219200-346400

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Tanzanian Shilling)

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 + 5.2 children, 1.9 working) 565600-762700
Standard family (two parents + 2 children, 1.8 working) 438400-599900
Two parents and two children, 2 working 394600-539900
Two parents and two children, 1.5 working 526100-719900
Two parents and two children, 1 working 789100-1079800
Two parents and three children, 1.9 working 462300-629100
Two parents and four children, 1.9 working 509200-689800
Single-adult without children, 1 working 219200-346400

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Tanzanian Shilling)

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 65000 65000 65000 65000
Living Wage - Single Adult - - - 219200-346400
Living Wage - Typical Family - - - 565600-762700
Real wage of low-skilled worker 246700-497500 218600-408400 194700-344100 221900-438700
Real wage of medium-skilled worker 400700-644200 390000-607000 351900-538400 346500-536500
Real wage of high-skilled worker 671400-1189800 682500-1095200 595600-955100 587600-966400

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.

Tanzania Graph

Food basket and food prices in Tanzanian Shilling

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 72 213 2000-2000
Rice 57 201 1600-2000
Meat (beef, pork, poultry) 31 50 6000-8000
Oils (soyabean, olive, palm) 14 121 2000-3000
Sugar (Raw Equivalent) 44 99 2000-2200
Maize and products 158 515 500-1500
Milk - Excluding Butter 109 58 1200-1200
Vegetables, Other 93 22 2000-2000
Potatoes and products 60 42 1500-2000
Butter, Ghee 2 20 3200-3500
Groundnuts (Shelled Eq) 38 115 1200-2500
Pulses, Other and products 21 70 1500-2000
Cassava and products 197 138 1500-1500
Egg (price per 10 eggs) 2 2 3000-3420
Sunflowerseed Oil 5 42 3500-4000
Fish products 15 12 5000-8000
Beer (0.5 liter/pint) 22 10 4800-5000
Sweeteners, Other 0 1 2000-2000
Beans 35 119 1800-2000
Sweet potatoes 126 121 1500-2000
Bananas 103 62 2000-3000
Soyabeans 0 0 2000-2500
Yams 0 0 2000-2000
Apples and products 1 0 3400-4000
Tomatoes and products 21 4 2000-2000
Onions 8 3 2000-2500
Oranges, Mandarines 19 6 1000-2000
Plantains 30 27 1000-2000
Peas 0 0 1500-2000
Roots, Other 0 0 1000-1200
Seeds and kernels 6 15 1500-2500
Wine (bottle) 0 0 13300-13300
Pineapples and products 18 6 -
Cream 0 0 3000-5000
Olives (including preserved) 1 2 2000-4000
Honey 2 5 7000-10000
Citrus, Other 2 1 1500-2000
Lemons, Limes and products 1 0 1000-1500
Tea (including mate) 0 0 4000-6000
Grapefruit and products 0 0 2000-3000
Coffee and products 0 0 5000-5000

 

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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