Living Wage Series - Uganda - December 2018 - In Uganda 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 Uganda Shilling)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 784000-1106100 397000-560000 99300-140000
Housing 300000-500000 300000-500000 150000-252700
Transport 60000-120000 60000-120000 30000-60000
Health 35100-100000 35100-100000 8770-25000
Education 18500-82400 18500-82400 0
Other costs 59900-95400 40500-68100 14400-23900
Total Expenditure 1257500-2003900 851100-1430500 302475-501600
Net Living Wage 661842-1054684 472833-794722 302475-501600
Gross Living Wage 847200-1350000 605200-1017300 387200-642100

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in Uganda 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 + 5.9 children, 1.9 working) 847200-1350000
Standard family (two parents + 2 children, 1.8 working) 605200-1017300
Two parents and two children, 2 working 544700-915500
Two parents and two children, 1.5 working 726300-1220700
Two parents and two children, 1 working 1089400-1831000
Two parents and three children, 1.9 working 643600-1062700
Two parents and four children, 1.9 working 713800-1161800
Single-adult without children, 1 working 387200-642100

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in Uganda 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 - - - -
Living Wage - Single Adult - - - 387200-642100
Living Wage - Typical Family - - - 847200-1350000
Real wage of low-skilled worker 261500-411800 275200-400900 246500-393200 235900-282000
Real wage of medium-skilled worker 484100-887100 535300-939300 442800-821600 436800-652700
Real wage of high-skilled worker 730900-1640400 759200-1642700 648700-1492900 636300-1174900

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.

Uganda Graph

Food basket and food prices in Uganda 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 49 136 4170-7000
Rice 13 46 3000-3500
Meat (beef, pork, poultry) 38 85 10000-12000
Oils (soyabean, olive, palm) 17 150 3800-7000
Sugar (Raw Equivalent) 46 119 3650-4000
Maize and products 137 425 1500-1500
Milk - Excluding Butter 105 66 1500-2120
Vegetables, Other 60 13 1500-3000
Potatoes and products 11 8 2000-2500
Butter, Ghee 1 9 -
Groundnuts (Shelled Eq) 11 57 8000-10000
Pulses, Other and products 2 7 -
Cassava and products 213 233 1200-2000
Egg (price per 10 eggs) 3 3 3000-3580
Sunflowerseed Oil 6 50 -
Fish products 35 25 14000-16500
Beer (0.5 liter/pint) 22 9 6000-7500
Sweeteners, Other 0 1 -
Beans 64 215 2600-6000
Sweet potatoes 131 126 1500-2000
Bananas 41 25 2000-3500
Apples and products 0 0 2500-4000
Tomatoes and products 3 1 2100-3500
Onions 14 5 2000-4500
Oranges, Mandarines 2 0 3000-3000
Plantains 284 252 -
Peas 0 2 5000-6000
Seeds and kernels 8 31 2-2
Wine (bottle) 0 0 26700-40000
Cream 0 0 5000-12000
Honey 0 0 10000-15000
Lemons, Limes and products 0 0 1000-2500
Coffee and products 0 0 6000-6500

 

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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