Living Wage Series - Uganda - September 2019 - 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 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 UGX)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food expenses 879100-1260300 456700-654700 114200-163700
Housing expenses 468800-600000 468800-600000 237700-359600
Transport expenses 160000-180000 160000-180000 80000-90000
Healthcare expenses 35600-90600 35600-90600 8900-22700
Education expenses 20300-118300 20300-118300 0
Other expenses 78200-112500 57100-82200 22000-31800
Total Expenditure 1642000-2361700 1198500-1725800 462800-667750
Net Living Wage 965882-1389235 665833-958778 462800-667750
Gross Living Wage 1236300-1778200 852300-1227200 592400-854700

Note: For more details see Living Wage FAQ.

 

Family Living Wages (monthly rates in UGX)

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 + 5.7 children, 1.7 working) 1236300-1778200
Standard family (two parents + 2 children, 1.8 working) 852300-1227200
Two parents and two children, 2 working 767000-1104500
Two parents and two children, 1.5 working 1022700-1472700
Two parents and two children, 1 working 1534100-2209000
Two parents and three children, 1.7 working 992600-1428900
Two parents and four children, 1.7 working 1082900-1558200
Single-adult without children, 1 working 592400-854700

Note: Results in the table are rounded.

 

Living Wages in Context (monthly rates in UGX)

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 - - - -
Living Wage - Single Adult - - - 592400-854800
Living Wage - Typical Family - - - 1236300-1778200
Real wage of low-skilled worker 336100-588000 382100-567000 284500-385500 386100-556500
Real wage of medium-skilled worker 468900-940200 553600-930700 422800-651700 566800-920300
Real wage of high-skilled worker 768400-1761800 893700-1712100 669700-1166500 889800-1632600

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 UGX

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 4980-7000
Rice 13 46 3000-3500
Meat (beef, pork, poultry) 38 85 10000-13000
Oils (soyabean, olive, palm) 17 150 3500-5000
Sugar (Raw Equivalent) 46 119 3700-4000
Maize and products 137 425 1500-1750
Milk - Excluding Butter 105 66 1500-2120
Vegetables, Other 60 13 2500-4000
Potatoes and products 11 8 2000-4000
Butter, Ghee 1 9 12000-18500
Groundnuts (Shelled Eq) 11 57 8000-10000
Pulses, Other and products 2 7 -
Cassava and products 213 233 -
Egg (price per 10 eggs) 3 3 3000-3700
Sunflowerseed Oil 6 50 -
Fish products 35 25 14000-16000
Beer (0.5 liter/pint) 22 9 6000-8000
Sweeteners, Other 0 1 -
Beans 64 215 3000-6000
Sweet potatoes 131 126 2500-5000
Bananas 41 25 3000-3000
Apples and products 0 0 2500-4620
Tomatoes and products 3 1 2350-5000
Onions 14 5 2500-5000
Oranges, Mandarines 2 0 3000-3500
Plantains 284 252 -
Peas 0 2 5000-6000
Seeds and kernels 8 31 2-3
Wine (bottle) 0 0 26700-40000
Cream 0 0 6000-12000
Honey 0 0 10000-12000
Lemons, Limes and products 0 0 1000-3000
Coffee and products 0 0 5000-6500

 

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.

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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