Question 1

Living Wages, Living Income, Living Tariff Worldwide. Update November 2025

Accepted Answer

WageIndicator Foundation Amsterdam, November 2025Authors: Martin Guzi, Nii Ashia Amanquarnor, Daniela Ceccon, Martin Kahanec, Paulien Osse, Fiona Dragstra, Kea Tijdens, Nina Holičková and Mehr KalraCopyright 2025 by author(s). All rights reserved.Picture cover page and pictures throughout the report: Ⓒ Paulien OsseWageIndicator Foundation - www.wageindicator.orgWageIndicator Foundation is a global, non-profit organisation operating in 208 countries. WageIndicator started in 2000 to contribute to a more transparent labour market by publishing easily acces- sible labour market related information online. We collect, analyse, and share data on minimum wages, salaries, living wages, living income, living tariffs, labour laws, collective agreements, and gig and platform work. Our aim is to enhance labour market transparency for workers, employers, academics, trade unions, and policymakers worldwide. Through its platforms, available in 70+ languages, events, newsletters, WageIndicator reaches millions of people yearly.The authors:Martin Guzi is affiliated with the WageIndicator Foundation, Masaryk University and Central European Labour Studies Institute (CELSI)Nii Ashia Amanquarnor, Data scientist, WageIndicator FoundationDaniela Ceccon, Director Data, WageIndicator FoundationMartin Kahanec, Labour Economist, professor at Central European University in Vienna, and affiliated with University of Economics in Bratislava, Central European Labour Studies Institute (CELSI), the WageIndicator Foundation and Global Labor Organization (GLO)Paulien Osse, Co-founder WageIndicator Foundation, Global Lead Living WagesFiona Dragstra, Director, WageIndicator FoundationKea Tijdens, Co-founder WageIndicator FoundationMehr Kalra, Data Analyst, WageIndicator FoundationCorresponding author: Martin Guzi, WageIndicator FoundationContact UsAcknowledgementsMany people contributed to the development of the Cost of Living survey, the Living Wage calculations and to this report, i.e. Iftikhar Ahmad, Batorava Market Research Services, Ahshan Ullah Bahar, Huub Bouma, Hien Dong Thi Thuong, Hala Chamaa, Angelica Flores, Guide Erisha Manhando, Carlos Felipe Zavala Gomez, Rogério Junior, Ali and Emin Huseynzade, Hossam Hussein, Maarten van Klaveren, Mehr Kalra, Jane Masta, Rahna Medhat, Eyoel Mekonnen, Knar Khudoyan, Rupa Korde, Nermin Oruc, Irene Eduardo Palma, Luis Eduardo Palma, Intan Citra Phonskaningtyas, Giulia Prevedello, Mariana Robin, Gashaw Tesfa, Ernest Tiemeh and special thanks to the hundreds of data collectors around the world.Bibliographical informationGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., Dragstra, F., Tijdens, K.G. & Holičková, N. (2025). Living Wages, Living Income, Living Tariff Worldwide. Update November 2025. Amsterdam, WageIndicator Foundation.WageIndicator Foundation Mondriaan Tower 17th floor Amstelplein 36, 1096 BC Amsterdam The NetherlandsContact Us

Question 2

Updates to the report based on earlier editions

Accepted Answer

This report and its previous versions build on the original report by Guzi and Kahanec (2019) on measuring Living Wages globally. Since 2019, this report has been updated often, sometimes multiple times a year. Below you find the specific changes that have been made at each update.2022In 2022, this report was updated in February and May:Guzi, M., Amanquarnor, N., Ceccon, D., Kahanec, M., & Tijdens, K. (2022). Living Wages worldwide, update 2022. Amsterdam, WageIndicator Foundation, FebruaryIn February 2022, the following topic was included:Latest quarterly data.2023 - FebruaryGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., & Tijdens, K.G. (2023) Living Wages Worldwide, update February 2023. Amsterdam, WageIndicator Foundation.In February 2023 the following topics were included:Living Income and Living Wage Plus.Insight into the role of data collectorsLatest quarterly data.2023 - NovemberGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., & Tijdens, K.G. (2023). Living Wages and Living Income Worldwide, update November 2023. Amsterdam, WageIndicator Foundation.In November 2023 the following topics were included:Single income earner as an option in the Family typesNext to Region - Urban/ Rural now also Peri Urban / Peri - RuralEthical Principles Implementation Living Wages GuidanceLatest quarterly data, yearly average data, Guidance data2024 - OctoberGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., Dragstra, F., Tijdens, K.G. & Holičková, N. (2024). Living Wages, Living Income, Living Tariff Worldwide.In October 2024 the following topics are included:Role of ILO in the Living Wage conceptMinimum Wage database linked to GPS codes of relevant parts of cities, regions, countries and optional to company locations.WageIndicator introduces the ‘Living Tariff’ as a conceptAdditionals on top of the basic basket of goods: (child) care, private car costInclusion of ‘Adequate Wages’Publication of publicly accessible Living Wage estimates in May 2024Latest quarterly data, yearly average data, Guidance data2025 - NovemberGuzi, M., Amanquarnor, N.A., Ceccon, D., Kahanec, M., Osse, P., Dragstra, F., Tijdens, K.G., Holičková, N. & Kalra, M. (2025). Living Wages, Living Income, Living Tariff Worldwide. Update November 2025. Amsterdam, WageIndicator Foundation.Update of the formula used to calculate the number of earners in a family (now including also unemployment rate and part time rate, next to the labour participation rate)More precision on implementation rulesLatest quarterly data, yearly average data, Guidance data

Question 3

Glossary

Accepted Answer

Topic Description Basket of goods and services A basket of goods and services is a category of items that people must consume to satisfy their basic needs Collective agreements Collective agreements are legally binding contracts between employers and a group of employees, typically represented by a union, that set out terms and conditions of employment such as wages, working hours, worker protections, and benefits. Collective bargaining Collective bargaining is the process in which workers, through their union, negotiate collective agreements. The way employers and employees may negotiate is stipulated in the labour law. This differs per country. In some countries sector wise Collective Agreements are possible, in others only company specific agreements can be negotiated. Some employee groups may be excluded like freelancers, part timers or those who have a high rank in the company. Corporate Sustainability Due Diligence Directive (CSDDD) The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) is an EU directive that requires large companies to identify, prevent, and address human rights and environmental harms in their operations and supply chains. Corporate Sustainability Reporting Directive (CSRD) The EU’s Corporate Sustainability Reporting Directive (CSRD) is an EU Directive that requires large and listed companies in the EU to disclose detailed information on their environmental, social, and governance (ESG) impacts. It aims to increase transparency and help investors, consumers, and stakeholders make informed decisions. Cost-of-living survey The survey used to assess the cost of goods and services consumed by people to meet their basic necessities. The cost-of-living survey from WageIndicator has been in use since 2014; over the years the survey improved. The survey covers close to 200 countries. https://costofliving.wageindicator.org/#/survey CPI Consumer Price Index EU SILC European Union Statistics on Income and Living Conditions FAO The UN Food and Agricultural Organisation FAO Food Balance Sheet The FAO Food Balance Sheet is a statistical framework that presents a comprehensive picture of a country’s food supply and utilization over a specific period, typically a year FTE wages The wages an employee would earn working full-time hours over a period based on their current compensation adjusting part-time earning to a full-time basis for consistent comparison Gig work Gig work refers to short-term, temporary, or project-based jobs performed by employees but mainly by independent contractors or freelancers instead of employees. This may or may not be arranged through digital platforms or apps. ILO International Labour Organisation IMF International Monetary Fund In-kind benefits Non-monetary forms of compensation to employees, like health insurance or meals, raising total compensation beyond monetary wages paid. Inflation Inflation is the general increase in the prices of goods and services across an economy over time, resulting in a decrease in the purchasing power of money Labour Law Labour law is the body of laws and regulations that govern the rights, responsibilities, and conditions of work between employers and employees. In some countries the self-employed are part of the Labour Law. Living Income The Living Income is the remuneration applied to self-employed workers, like farmers and small business owners. It builds on the concept of a Living Wage and must afford these workers and their families a decent standard of living. Unlike a Living Wage, where taxes and social security contributions are paid by employers, a Living Income accounts for taxes and contributions being paid by self-employed workers themselves. Living Tariff The Living Tariff is the remuneration applied to self-employed workers as well as gig workers who are generally paid per hour or task. It builds on the concept of a Living Wage, to reflect the diverse conditions of self-employed workers, also accounting for any work-related costs they incur such as materials (laptop, motorcycle), extra insurances and acquisition time. Living Wage Guidance Data Using the yearly average estimate, WageIndicator calculates a Living Wage Guidance figure (for a country or region) following this procedure to ensure consistency over time: If the current Yearly Average increased by less than 5% above the IMF inflation rate or decreased by less than 3% from previous year’s Guidance, the Living Wage Guidance equals the current Yearly Average. If the current Yearly Average decreases by more than 3% from previous year’s Guidance, the Living Wage Guidance is capped to a maximum of 3% down from previous year’s Guidance. If the current Yearly Average increases by more than 5% above the IMF inflation rate from previous year’s Guidance, the Living Wage Guidance is capped at IMF inflation rate plus 5%. Living Wage Guidance publication Every year, in October, WageIndicator presents a Guidance estimate. The estimates will be published each October in this page https://wageindicator.org/work/living-wages/freely-available-living-wage-data Living Wages According to the ILO, a Living Wage is the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country's circumstances and calculated for the work performed during the normal hours of work. Minimum Wages The Statutory Minimum Wage is the lowest hourly, daily, or monthly wage that an employer is legally obliged to pay an employee. The Statutory Minimum Wage is set by governments, sometimes by employers, trade unions and the government. Some countries have a Minimum Wage structure, they rely on Collective Bargaining, other countries have Minimum Wages for sectors, regions and even occupations. More - https://wageindicator.org/work/minimum-wages Model diet The diet that people must consume to meet their basic nutritional requirements Overtime work Overtime work is work performed in excess of the standard or contractually stipulated hours of work Poverty line The poverty line is the minimum level of income deemed necessary to meet basic needs such as food, shelter, and clothing. WageIndicator’s Region API A piece of software WageIndicator uses to make a database with the names of regions and cities for countries worldwide accessible Single Income Earner Family Living Wage The Living Wage for a family comprising two adults and where the number of children is determined by the country's fertility rate. Only one adult works full-time. Social dialogue Social dialogue is the process of negotiation, consultation, or exchange of information between representatives of governments, employers, and workers on issues of common interest, especially regarding economic, employment, and social policy Standard Family Living Wage The Living Wage for a family comprising two adults and two children, where one adult works full-time and the other works 80% of the legally permissible hours. Standard working week The standard working week refers to the typical number of working hours set by law or practice, usually between 38 and 48 hours per week, beyond which overtime rules may apply Sustainable Development Goals The Sustainable Development Goals (SDGs) are a set of 17 global goals adopted by the United Nations to end poverty, protect the planet, and ensure peace and prosperity for all by 2030. More: https://sdgs.un.org/goals Typical family Living Wage The Living Wage for a family comprising two adults and where the number of children is determined by the country's fertility rate. One adult works full-time, while the working hours of the other are determined by the country's labour force participation and part time rate Upper and Lower Bound Living Wage estimates WageIndicator calculates Living Wages in a range. The lower bound (lowest) Living Wage is calculated using prices at the 25th percentile (or first quartile) of all prices collected while higher bound (highest) uses the 50th percentile (or median) figure. This reflects price variation in a region; the 25th percentile is the value for which 75% of the respondents reported higher prices, while the 50th percentile (median) is the value for which half of the respondents reported higher and the other half lower prices. WFP World Food Programme WHO World Health Organisation Work-related items Items like laptops, motorbikes, delivery equipment, etc. that gig or platform workers may incur costs on for professional reasons. These must be accounted for appropriately in the Living Tariff calculations for any profession.

Question 4

1. Introduction

Accepted Answer

XXX

Question 5

1.1 Summary

Accepted Answer

A growing international consensus recognises the payment of a Living Wage as a fundamental component of decent work and a prerequisite for social and economic sustainability. This principle is rooted in Article 23 of the Universal Declaration of Human Rights, which asserts the right to just remuneration sufficient for a dignified existence, and is reinforced by at least eight of the United Nations Sustainable Development Goals (SDGs). Recent regulatory frameworks and global initiatives—such as the OECD Due Diligence Guidelines and the UN Global Compact’s Forward Faster programme—underscore increasing expectations for companies to ensure wages that meet workers’ basic needs, both within their operations and across supply chains.A major milestone was reached with the ILO Meeting of Experts on Wage Policies in 2024, which produced a formal consensus and principles for wage-setting. These principles emphasise transparent and evidence-based wage determination through tripartite social dialogue and collective bargaining. Definitions of a Living Wage across international organisations, national constitutions, and civil society initiatives reveal broad convergence around the principle of meeting workers’ and their families’ basic needs. Some, such as the Brazilian Constitution, introduce mechanisms for preserving real wage value through periodic adjustments. However, the Living Wage remains a voluntary estimate, rather than a statutory minimum, and is increasingly viewed as a tool to inform wage negotiations and guide incremental progress from minimum to living wages (ILO, 2024).Within this landscape, WageIndicator has developed its Living Wage methodology since 2013. It operates in 208 countries, and collects extensive cost-of-living information through professionalised, mixed-method data collection including web surveys, price monitoring, and local fieldwork. Over the years, WageIndicator has expanded both its methodological sophistication and geographical granularity, most recently providing subnational estimates for India (145 divisions), China (359 prefectures), and the United States (625 commuting zones). Its databases support a wide range of stakeholders, including multinational companies, trade unions, international organisations, NGOs, and academic researchers.WageIndicator’s methodology adheres to ILO principles by ensuring transparency, sensitivity to national contexts, regular updates, and public accessibility. It provides separate estimates for salaried workers (Living Wage), the self-employed (Living Income), and from 2024 the platform and gig economy and other self-employed workers (Living Tariff), which incorporates occupation-specific costs such as equipment, insurance, and waiting time.The 2025 edition of WageIndicator’s Living Wages, Living Income, Living Tariff report consolidates more than a decade of development in Living Wage estimation and expands the framework’s global applicability. Methodological updates in 2025 include a revised formula for estimating the number of household earners, improved cost-of-living survey instruments, and further guidance for applying Living Wage benchmarks.

Question 6

1.2 Introducing Living Wages

Accepted Answer

Article 23 of the United Nations Universal Declaration of Human Rights affirms that every individual who works has the right to just and favourable remuneration, ensuring a dignified existence for themselves and their families. The 17 United Nations Sustainable Development Goals (SDGs) set for 2030 and adopted by all UN member states in 2015 add urgency to Living Wage implementation, since paying a Living Wage furthers at least eight out of the 17 SDGs (Van Tulder & Van Mil, 2022; Kingo, n.d.). In addition to these global goals, recent regulatory frameworks, further highlight the importance of fair wage practices and ensuring wages are adequate to at least meet workers’ basic needs. Living wage commitments are an important piece of corporate Human Rights policies, as also recognised by the OECD Due Diligence Guidelines (Balestra, Hirsch & Vaughan-Whitehead, 2023). Along with UN Global Compact’s Forward Faster, where Living Wage is one of the pillars, there is increasing pressure for businesses from investors, consumers, ESG agencies and external bodies, to commit to paying your employees a Living Wage; some have even been cooperating with their suppliers to achieve Living Wages in their supply chains (Mapp, 2020).A critical step in the global progression of living wage occurred with the International Labour Organization’s (ILO) Meeting of Experts on Wage Policies, including living wages, in February 2024, which reached a consensus in March 2024. The conclusions of this meeting reinforced the importance of transparent wage-setting mechanisms grounded in tripartite dialogue and collective bargaining, ensuring that employers, workers, and governments collaboratively establish fair wages. Since then, the ILO has adopted a set of Principles for Wage-Setting Practices (ILO, 2024). These practices not only secure fair outcomes but also contribute to workplace stability and social equity. Collective bargaining processes play a significant role in reducing wage inequality by establishing negotiated wage floors that prevent wages from falling below essential living standards (Zwysen, 2024). Research suggests that minimum wages supported by social dialogue and bargaining can help wages keep pace with living costs, thus avoiding stagnation and preventing deepening inequality (Zwysen, 2024; Müller 2024).One of the first studies that aimed to understand the income necessary for basic living standards comes from Benjamin Seebohm Rowntree’s 1901 study, ‘Poverty: A Study of Town Life’. Rowntree's study was groundbreaking for its methodology, as he developed a "poverty line" based on the cost of a "basket of goods" that included essential items for a working-class family to sustain health and basic living conditions. His research sought to identify what level of income was required for a family to afford essential needs, which he categorised as food, shelter, clothing, and other basic necessities. Today, this approach has evolved into a framework that helps determine the minimum income necessary for a decent living standard, guiding most living wage calculations.Living wage estimates typically cover essential costs such as food, housing, clothing, childcare, transportation, and healthcare, along with a modest allowance for leisure and emergency expenses. Mankiw (2020) observes that living wage calculations generally exclude significant savings for property ownership, debt repayment, retirement, or education, focusing instead on immediate living costs. Though definitions of a living wage vary in wording, they converge on a shared principle: a wage adequate to meet workers' basic needs without requiring government assistance (Gerber, 2017). The list below shows a selection of definitions of a living wage.ILO Constitution (1919) and Declarations:The preamble of the ILO Constitution (1919) called for an urgent improvement in conditions of labour including “the provision of an adequate living wage”. This objective was reinforced in the 1944 Declaration of Philadelphia, which supported policies ensuring “a minimum living wage to all employed and in need of such protection”. Although these early statements did not specify criteria for defining a living wage, they described it as a wage “adequate to maintain a reasonable standard of life as understood in the worker’s time and country”. Following the ILO Meeting of Experts on Wage policies, including living wages, in February 2024, the ILO defines the concept of a living wage as “the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed during the normal hours of work”. This estimate is to be calculated in accordance with the ILO’s principles of estimating the living wage, and to be achieved through the wage-setting process in line with ILO principles on wage setting, such as the need for tripartite dialogue and collective bargaining”. (ILO, 2024)Mexican Constitution (1917):The Mexican Constitution of 1917 states that “the general Minimum Wage must be sufficient to satisfy the normal necessities of a head of family in the material, social, and cultural order and to provide for the mandatory education of his children”.Brazilian Constitution (1988):The Brazilian Constitution (1988) stipulates that the national Minimum Wage must be “capable of satisfying their basic living needs and those of their families with housing, food, education, health, leisure, clothing, hygiene, transportation and social security, with periodical adjustments to maintain its purchasing power”.Global Living Wage Coalition:The Global Living Wage Coalition defines the Living Wage as “a remuneration received for a standard workweek by a worker in a particular place sufficient to afford a decent standard of living for the worker and her or his family. Elements of a decent standard of living include food, water, housing, education, health care, transport, clothing, and other essential needs, including provision for unexpected events”.The Asia Floor Wage AllianceThe Asia Floor Wage Alliance proposes a wage for garment workers across Asia that would be enough for workers to “be able to provide for themselves and their families’ basic needs – including housing, food, education and healthcare”.Living Wage Aotearoa New ZealandLiving Wage Aotearoa New Zealand defines a Living Wage as “the income necessary to provide workers and their families with the basic necessities of life”.Living Wage Foundation UKThe Living Wage Foundation UK calculates their Living Wage rates on the basis of the Minimum Income Standard (MIS) methodology which focuses on understanding the “income that people need to reach a minimum socially acceptable standard of living in the UK today, based on what members of the public think is needed for an acceptable minimum standard of living. It is calculated by specifying baskets of goods and services required by different types of households to meet these needs and to participate in society”.A comparative analysis of these definitions reveals a shared foundational principle: a Living Wage universally encompasses the income required to meet the basic needs of workers and their families, thus enabling a dignified standard of living. Notably, the Brazilian Constitution introduces a distinctive approach by mandating periodic adjustments to maintain the purchasing power of the minimum wage, effectively countering inflation and safeguarding the wage’s real value over time. Importantly, the living wage is not (yet) enshrined in legislation as the minimum wage or as social welfare payment. Instead, it should be seen as one of the elements that may inform wage negotiations and improve minimum wages. Or as the ILO Meeting of Experts report notes “promoting incremental progression from minimum wages to living wages”, (ILO, 2024).WageIndicator welcomes the conceptualisation of living wages and its adjacent principles resulting from the ILO Meeting of Experts in 2024, and follows ILO’s definition and principles in its work on Living Wages: “the wage level that is necessary to afford a decent standard of living for workers and their families, taking into account the country circumstances and calculated for the work performed during the normal hours of work”.How WageIndicator follows the ILO Principles on Estimating a Living Wage can be found on the WageIndicator website[1].This 2025 report deals with the constituting elements in WageIndicator’s Cost-of-Living data collection, the calculation of WageIndicator’s Living Wages and Living Income, and ‘Living Tariff’. This report also highlights the newest additions to WageIndicator’s work on Living Wages. For the updates in this report in comparison to previous versions, see Chapter 1.4.[1] ILO Principles and WageIndicator Alignment

Question 7

1.3 Why promote the concept of a Living Wage?

Accepted Answer

The term Living Wage differs from the terms Minimum Wage and subsistence wage. A Minimum Wage is mandatory, determined through legislation. It should meet an individual’s basic requirements but may imply that a worker relies on government subsidies for additional income. The (statutory) minimum wage may result from social dialogue, collective bargaining, or a governmental or parliamentary decision, but by itself, it does not establish a benchmark that ensures a decent living for its recipients. A subsistence wage is a minimum income that only provides for the bare necessities of life. In contrast, a Living Wage is not mandatory, but paid voluntarily. Whatever the differences, all these concepts attempt to establish a price floor for labour (Mateer, Coppock & O’Roark, 2020).The importance of a Living Wage lies in that it establishes broader universal standards for a decent living. Besides the standard for Living Income, this includes a ‘normal’ working week (ILO Convention 1, 1919). This concept implies avoiding excessive overtime hours, taking on more than one job, avoiding the risk of becoming a bonded labourer, or to put one’s children to work while forsaking education, for not to be denied basic human rights such as food, clothing, shelter, suffer social depravities, or be able to withstand crises. That being said, paying workers a Living Wage might motivate them to stay with the company, thus reducing recruitment and training costs, and resulting in healthier employees, thus reducing the loss of working hours due to sickness (Gerber, 2017).The minimum wage, while essential for wage regulation, often falls short of securing a decent living standard for workers due to its limited scope and reliance on baseline subsistence costs rather than actual living expenses (Müller, 2024). The challenge is that statutory minimum wages are typically based on governmental or legislative decisions and may not consider the cost of living in each region. A living wage considers local cost-of-living variations and other basic necessities required for stability, such as housing and healthcare. Studies consistently show that minimum wages tend to lag behind inflation, particularly in high-cost regions, creating a gap between earnings and the income needed to avoid poverty and dependence on public assistance programs​ (Di Marco, 2023). This distinction highlights the gap that can emerge when statutory or traditional benchmarks fail to keep pace with contemporary economic conditions. There are four key reasons why minimum wages often fail to guarantee a decent standard of living. First, many minimum wage levels are based on outdated living standards that have not been regularly adjusted for inflation. Second, although some minimum wage frameworks reference the notion of a decent living, they rarely measure or operationalise this standard. Third, in many cases, minimum wage legislation does not reference living standards at all. Finally, minimum wages typically do not cover the entire workforce, excluding categories of workers such as the self-employed, informal workers, or those in non-standard forms of employment.Most Living Wage models include the costs of food, rent, transportation, childcare, healthcare, and taxes. Despite the general understanding that a Living Wage makes for ethical and economic contributions, a worldwide standard for calculating Living Wages has still to be set. The report of November 2025, and its versions October 2024, November 2023 (Guzi et al. 2023b), February 2023 (Guzi et al. 2023a), May 2022 (Guzi et al, 2022b) and February 2022 (Guzi et al., 2022a), aim to contribute to a solid foundation for such a global methodological framework. These reports follow a design, already outlined in 2014, to calculate country-level Living Wages for a large number of countries based on these characteristics (Guzi & Kahanec, 2014; Guzi & Kahanec, 2019). According to WageIndicator Living Wage estimates are:Normatively based;Sensitive to national conditions;Based on transparent principles and assumptions;Easy to update regularly;Published online and accessible for everyone.With the addition of the Living Income and the Living Tariff, WageIndicator aims to introduce an income estimate regardless of the contract type.

Question 8

1.4 Introducing WageIndicator Foundation

Accepted Answer

WageIndicator Foundation is a global, independent, non-profit organisation operating in 208 countries across the world that collects, analyses and shares information on Minimum Wages, Salaries, Living Wages, Living Income and Living Tariff, Labour Laws, Collective Agreements and Gig and Platform Work. It aims to improve labour market transparency for workers, employers and policy makers worldwide by providing accessible labour market information through websites in 70+ national languages (Image 2). In partnership with leading universities and academic institutes across the world, WageIndicator undertakes research on wages, working conditions, labour law compliance, the gig economy, and collective bargaining.In 2000, WageIndicator launched its first website in the Netherlands. The European websites followed in 2004, and from 2006 onwards began launching websites for countries across the world. As of 2025, WageIndicator hosts pages for 208 countries and territories, as well as a few thematic ones. These sites, along with WageIndicator’s social media channels and events receive millions of visitors annually. The publicly available Living Wage estimates of WageIndicator received 26,435 visitors and have downloaded 51,116 regions between 1 May - 1 October 2025.Databases have been central to WageIndicator’s work since its inception. It operates a Living Wage database, a Salary database, a GPS-coded Minimum Wage database, a Labour Law database, and a Collective Agreements database. Data for these is collected through local face-to-face data collectors, desk research, price monitoring, and national labour law analysis. WageIndicators databases are interlinked through APIs, where useful and possible.Image 1. The Flow of WageIndicator databases from data collection to publication and datasetsSource: WageIndicator Foundation 2025WageIndicator teamWageIndicator has team members across 63 different countries and data collectors in all 208 countries and territories in which it operates. It’s officially registered as a foundation in Amsterdam, the Netherlands. The foundation has a core team of 75 people and some 150 associates - specialists in wages, labour law, industrial relations, data science, statistics - from all over the world. In addition, WageIndicator works with a global network of over 400 data collectors worldwide in addition. On a yearly basis, WageIndicator Foundation offers internships to students from various universities across the world, including FLAME University, Dokuz Eylül University, University of Namibia, Ahmedabad University and Bucharest University of Economic Studies.Image 2. Map of WageIndicator countriesSource: WageIndicator Foundation 2025

Question 9

1.5 History of WageIndicator’s Living Wage data collection

Accepted Answer

In October 2013, WageIndicator developed a plan to collect data about the prices of food items. Given the huge numbers of web visitors, it seemed “easy” to post a daily rotating teaser on all web pages asking web visitors for the actual price of a single food item. Once they had entered a price, they were asked to key in the prices of other items in the Cost-of-Living survey. Items asked about the prices of food, housing, drinking water, transport, and clothing and footwear.It became soon clear that the online data collection had to be supplemented with 'on the ground' data collection, observing prices in shops and markets as well as asking individuals about their expenditure for certain items. For this purpose WageIndicator established data collection teams in almost all countries, consisting of professional data collectors, complemented by trained interns. By October 2025 data was collected in 182 countries.💡Good to know: About 4% of overall data in October 2025 was collected from web users. Almost all was collected by professional data collectors and trained interns, improving its quality.The methodology of the Living Wage data collection and calculation has been described in Guzi and Kahanec (2014, 2017, 2019) and Guzi et al. (2016, 2022a, 2022b, 2023a, 2023b, 2024). This methodology comprises three elements, notably the methodology to identify the basket of goods, the methodology to collect the prices of the goods in the basket, and the stakeholder methodology of calculating living wage estimates. This is complemented by guidance for implementing Living Wages. The available estimates allow users and stakeholders to share and compare Living Wages across countries and regions based on a harmonised methodology. This methodology facilitates quarterly updating of the database (see Chapter 3.1 for further details of the history of the data collection).Since 2013, the data collection has advanced significantly, evoking the interest of stakeholders in the field of Living Wages. Demands for detailed information about Living Wages beyond country-level arose, challenging the business model underlying the Living Wage data collection. Initially, the data collection was funded from development aid projects and did not include delivery of data to multinational enterprises.In January 2025, we moved to more granular regions for cost of living data collection in India. Data collection for India is now conducted at the division level, resulting in 145 distinct regions with living wage estimates across the country.In July 2025, regions for cost of living data collection in China were restructured in order to provide granular estimates at the prefecture level in China. The shift from provinces to prefectures and prefecture-level cities, resulted in the availability of living wage estimates for 359 distinct regions in China.In October 2025, we improved our regions for data collection in the United States of America (USA), by shifting from States to Commuting Zones as recommended by the 2010 USDA Economic Research Service (ERS). Living wage estimates are now available for 625 distinct regions in the USA.The first multinational client was welcomed in 2018. Since then, WageIndicator has sold its regional Living Wages data to a growing number of global clients and multinational enterprises like Unilever, IKEA, Schneider Electric and Maersk, thousands smaller companies with a few locations, and NGOs like FairWear Foundation, MSF (Médecins Sans Frontières) or SOS Children's Villages International. Globally, trade union partners and researchers also make use of WageIndicator’s living wages.Since 2014, WageIndicator has taken part in the global discussion on Living Wages (see Annex 4). A few recent examples:26 January 2023, WageIndicator presented during a side-session of the World Economic Forum.In spring and summer 2023 WageIndicator presented during UN Global Compact meetings in The Netherlands, Switzerland, Brazil, New York and Stockholm.WageIndicator joined the panel “Brand due diligence strategies for living wages: Adapting action to context”, during the OECD Garment and Footwear Forum in Paris in February 2024,WageIndicator and FLAME University co-hosted the International Conference on Decent Work and Corporate Social Responsibility in the Era of the SDGs from 21 - 23 March, 2024 in Pune, India.In 2024 WageIndicator and FLAME University organised together with UN Global Compact India an academic conference titled Moving from Minimum Wages towards Living WagesIn 2024 WageIndicator presented the Living Tariff at "Platform work and workers collective action and organising conference at the University of Banja Luka.: The Case Study of the Living Tariff - September 6, 2024In April 2025, WageIndicator participated in the “Operationalising Living Wages” conference organised by the International Labour Organisation from 28-29 April 2025.In July 2025, WageIndicator participated in the 9th ILO Regulating for Decent Work conference including a special session on Living Wages, where we presented five papers.In September 2025, WageIndicator participated in the high-level meeting “Shaping the Living Wage Agenda in Asia and the Pacific – A high level regional dialogue under the Global Coalition for Social Justice” organised by the ILO in Colombo, Sri LankaIn October 2025, WageIndicator participated in, and presented two papers, for an upcoming book on Living Wages. The conference was on "The Payment of a Living Wage as a Human Right: Obligations of States and Responsibilities of International Businesses"In November 2025, WageIndicator participated in several high-level sessions on Living Wages during the Second World Summit for Social Development in Doha, Qatar.

Question 10

1.5.1 Changes and additions in the Cost-of-Living survey in 2024 and 2025

Accepted Answer

The Cost-of-Living survey has been updated and improved for the October 2024 and October 2025 release with both newly added questions and improvements to the wording of existing ones. For precise updates, check Annex 2.

Question 11

1.5.2 Changes in Family types, yearly Guidance estimate, and introducing the Living Tariff

Accepted Answer

The WageIndicator Living Wage data base includes the following since October 2025:Beyond regional data, our dataset offers more granularity by providing different estimates for rural, peri-rural, urban and peri-urban areas. A region is seen as an administrative area like a province or county. Learn more in Chapter 6.5.From July 2024, the delivered dataset includes the Adequate (Minimum) Wages for Europe, calculated using the 60% of the median and the 50% of the average paid wages in the country on the basis of EUROSTAT data. However, to maintain a global approach, WageIndicator recommends looking at the comparison between Minimum Wages and Living Wages, and to rather use Living Wages that are above the legal Minimum Wages. To assist in this, WageIndicator provides an extra column and a tool to identify the recommended Living Wage per country and region.In addition to Living Wage estimates for salaried workers and Living Income estimates for self-employed workers, WageIndicator has released in 2024 a Living Tariff Tool. The tool is active in Indonesia, India, Kenya, Netherlands and Pakistan. In 2025 the tool is also launched in South Africa. The tool gives insight into the basic tariff for a self-employed person. On top of that the tool allows to select an occupation popular in the platform industry, like a taxi-driver, rider or translator. The idea behind this is to make clear which items are required to arrive at a basic decent tariff per hour. The Living Tariff includes expenses for: food, housing, transport, clothes, water, similar to the components from the Living Wage and Living Income. On top of these items cost related items are included for specific occupations. Like a car and petrol for the taxi driver, a bike and helmet for the rider, a laptop and extra internet cost for the online worker. Moreover, the Living Tariff includes components like social security, insurance, pension, and time for administration and training. For some jobs, average waiting time will be included. More about this can be found in Chapter 4 and 6.1.5.The number of wage earners in a family was derived only from the national labour employment rate, while now also the national unemployment rate and the national part-time employment rate are included, using the following formula: Earners per family = 1 + {Average Adult Labour Participation Rate × (1 − Unemployment Rate) × (1 − [Part-Time Employment Rate÷2])}. The data used is from the last 10 years (2014-2023) and the earners per family are capped at a minimum of 1.5.

Question 12

1.6 Organisation of the Living Wage data collection

Accepted Answer

Below, we present an outline of the process resulting in quarterly updated releases of Living Wage data on a global scale. Table 1 gives a summary of this recurring operation. The ensuing chapters elaborate each of the steps, with the choices behind their design and performance.Table 1. WageIndicator Living Wage data collection process Recruit Recruit & train data collectors from all over the world for data-collection tasks (see Chapter 3) Collect Assign collection of prices for countries & regions per quarter; manage feedback from data collectors to improve data (see Chapter 3) Maintain WageIndicator’s IT team maintains and improves the survey Clean and calculate Clean the data, control for outliers, create scripts and calculate; enrich the data with input from other relevant sources, like IMF. Create by October yearly averages and a Guidance dataset (see Chapter 4) Check and present Quality check and presentation unit; create visuals and sheets for WageIndicator clients (see Chapter 4, 5) Present and provide data Present the data to clients, (global) organisations, calculate salary gaps, do projections, assist in implementation. Run a back office with Question & Answer within 48 hours for the users about the data, and what and how to implement. (see Chapter 5,6,7) Coordinate Ensure that each quarter, there is enough and timely data. Make sure that the data quality is improved continuously and engage in the global discussion on Living Wages. 💡Good to know: WageIndicator applies the principle that the data collection in the Cost-of-Living survey and thus the Living Wage calculations take place independently of employers or their organisations, workers or trade unions, or any other stakeholder. Negotiators use WageIndicator estimates - including the insights in the cost per component - to negotiate.💡Good to know: All data collectors are trained on ethics and adhere to WageIndicator’s Code of Conduct and Safeguarding policies

Question 13

2. Components of Cost of Living data collection

Accepted Answer

This chapter details the ten expenditure categories included in the Living Wage, Living Income and Living Tariff data collection, reflecting the requirements needed for an individual and their family to meet their basic needs. Chapter 3 explains how data about the prices of the items in these categories are collected in the WageIndicator Cost-of-Living survey.The ten components are:FoodHousing and utilities (water, electricity, heating, garbage collection, routine maintenance, cooking fuel)TransportDrinking waterPhone plus internetClothingHealth (health insurance, personal health, some essential cleaning items)EducationFive percent provision for unexpected eventsMandatory contributions and taxes on employee’s side (Living Wage), or employees and employers side (Living Income and Living Tariff)In addition to the ten main expenditure categories, WageIndicator recognizes the importance of two additional categories, which can be particularly relevant in some locations: childcare and the cost of using a private car. However, to avoid undesired spikes and to keep the methodology as stable as possible, they are presented as add-ons, which means that the amount is calculated and provided, but can be added to the Living Wage as an ‘extra’ when it is considered relevant.a) Add on - Child Care - on top of the basket of goods. The cost for this component is not reflected in the Living wage estimateb) Add on - Private car cost - so on top of the basket of goods. The cost for this component is not reflected in the Living wage estimate.Food, housing and utilities, transport, health, and education (so numbers 1,2,3,7,8) are considered essential expenses and are included in all living wage campaigns. Within WageIndicator’s basket of goods, drinking water (number 4) is treated as a separate category and not included in the food basket, because in some countries it constitutes a significant household expense. Expenses related to clothing and phones (numbers 5 and 6) are relatively smaller but equally important for maintaining a decent standard of living.In recent years, WageIndicator has established a regular process for calculating changes within these expenditure categories, although these changes should be very limited to avoid undesired spikes and ease implementation. For example, WageIndicator is aware that there are many expenses that are difficult to calculate but enable family members to participate in social and cultural activities. For now these expenditures are accounted for in the provision for unexpected events (number 9), which - just as in many other Living Wages methodologies - adds a 5 % to the final cost of living estimate. But WageIndicator is hopeful - when data collection for 200 countries for more than a year looks solid - it can present in 2026 estimates for social participation and cultural activities.Finally, taxes and contributions to social security (number 10) are considered part of the basic essential needs. The final estimate of the living wage is expressed in gross terms, making it comparable to the actual wages paid to employees. For more on Living Income/Tariff, see Chapter 4.💡Good to know: When we calculate the Living Wage, we account for mandatory contributions and taxes on the employee's side only. When we calculate a Living Income or Living Tariff, we account for mandatory contributions and taxes on the employee's and on the employer's side.💡Good to know: Living Wage and Living Income/Tariff are based on the categories 1 till 9. Category 10 shows the difference between Living Wage and Living Income/Tariff.

Question 14

2.1 Food

Accepted Answer

For the ‘Food’ component, we look at the nutritional requirement for good health as proposed by the World Bank (2020) which equals 2,100 calories per person per day (Haughton & Khandker, 2009). The food consumption patterns largely vary across countries, and hence it is important that these differences are addressed in the food basket. The food balance sheets published by the UN Food and Agriculture Organisation (FAO, 2023) include the supply of food commodities available for every country and reflect the potential food consumption basket of an average individual. WageIndicator takes care that an average food basket in a country meets the demand of 2,100 calories and that the food items are sufficiently balanced between the basic food groups, namely vegetables, grains, fruits, dairy, meat, beans, oils, and sweets. In 2025 WageIndicator and other Living Wage methodologies carried out a comparative analysis of the amount of calories applied by each methodology. The conclusion is that - even when applying different calories intakes for women, men and children - the result is always very close to 2100, thus making it a reasonable amount to use on average for all family members. The research will be soon made available as a working paper.Table 2 shows the 71 items in the food category, for which prices are collected in the Cost-of-Living survey. These items constitute a nutritious food base. As explained in detail in Chapter 4.1.1., a model diet for each country has been developed on the basis of the FAO food balance sheets and reflecting the varying food consumption patterns and habits of each country. For each country, the diet reflects 2,100 calories. The food items listed in the survey include all food items from the FAO database. WageIndicator classifies food items into food groups depending on the major food nutrient category they fall under. You can view the most recent list changes to the survey in Annex 2.Table 2: List of food items in the Living Wage Food basket Apples Clams, mussels and other molluscs Marine fish - fresh, frozen or canned Regular cooking oil Aquatic plants (seaweed, lotus, etc.) Cocoa beans or chocolate Melon Rice Bananas Coconuts - including copra Milk - regular, pasteurized and prepackaged Salt Barley flour Coffee - whole bean, ground, instant Milk powder Soybeans Beans - dry Cream - fresh Mutton, lamb and goat meat Spinach or other leafy green vegetables Bell pepper or sweet pepper Dried Fish Olives Squid, octopus, cuttlefish Berries Eggs - medium size Onions Starchy roots (beet, celeriac, radish) Bottle of water Freshwater fish - fresh, frozen or canned Orange or other citrus Sugar or raw equivalent Bovine meat (beef) Groundnuts or shelled equivalent Other poultry meat (duck, goose, turkey) Sunflower seed oil Breakfast cereals Honey Pasta Sunflower seed Bulgur or couscous Kale Peach Sweet potatoes Butter, ghee Lemons, limes Peas - dry Tea Cabbage Lentils - dry Pineapples Tofu Carrots Local fresh bread - white/brown Plantains Tomato Cassava / Manioc / Yuca Local Cheese Pork meat Watermelon Cereal flour Maize (corn) flour Potato Yams Chicken Mango Prawns, shrimps, crayfish, crabs - fresh, frozen or canned Yogurt Chickpeas or other pulses - dry Margarine Marine fish - fresh, frozen or canned Source: WageIndicator Foundation 2025Image 3. Fish market San Salvador, El SalvadorSource: WageIndicator Foundation, Ⓒ Paulien Osse

Question 15

2.2 Housing Costs and Utilities

Accepted Answer

Housing costs are very often the largest regular family expenditure. The standards of adequate housing depend on local conditions and therefore WageIndicator takes the cost of privately rented housing as the most realistic available option that is also acceptable in terms of decency. Data collectors are asked to record prices of housing that is not located in a very poor or very rich neighbourhood. Since most of our data collectors are locals, they are aware which areas might be classified under this category. The housing should have permanent walls, solid roofs and adequate ventilation. It should have electricity, water, heating - if needed in that area - and sanitary toilet facilities. Individuals (without children) are assumed to rent a studio/ one-bedroom home and households with children are assumed to live in a rented two-bedroom home. Table 3 shows how participants in the Cost-of-Living survey report the monthly rent, the number of bedrooms and location of their apartments. The collected housing prices are checked for outliers. A typical rent in the lower part of the price distribution (at 25th percentile) and in the middle of the price distribution (50th percentile or median price) is included in the Living Wage calculation. The apartment should be in an average urban area, outside the city centre and not centrally located or up-market.If housing in a region consists of predominantly rural dwellings, the housing costs reflect the prices of such houses. If the region is predominantly characterised by urban apartments, the housing costs reflect the prices of such apartments. This allows comparability of rent both across different countries and across different regions within countries as well.Utilities are an essential part of the items in the Living Wage data collection. For each housing type, it is defined what is included and what is not included in the cost of housing, as seen in table 3. To view the latest updates regarding utilities in the survey, see Annex 2.Table 3: List of housing and utilities items in the Living Wage data collection How much is the monthly housing cost for a standard apartment suitable for one person (studio or one-bedroom) in your city/region? How much is the monthly housing cost of a standard 2-bedroom apartment in your city/region? How much is the monthly housing cost for a single room in the shared apartment in your city/region? Are these costs included in the rent? Rent (applies to tenants only) Mortgage payments (applies to owners only) Energy - for heating/cooling, cooking, lights, etc. Water Garbage collection Routine maintenance and repairs Taxes on the dwelling Internet connection Monthly energy cost, including: electricity, gas (heating and cooking), heating and/or cooling, and other utilities used at home Water cost per month Garbage collection cost per month Other monthly costs associated with your house, such as: service/maintenance costs, taxes for dwelling, or city/region specific costs (NEW since 2024Q4) Source: WageIndicator Cost-of-Living survey 2025

Question 16

2.3 Transport Costs

Accepted Answer

Transportation is an important cost for households as most people commute for work and daily activities. The Living Wage assumes the use of public passenger transportation (bus, tram, train, shared taxi or local form of transport) provided in most areas. Transportation expenses thus consist of the expenses for a monthly pass (for a full time workweek) for the use of public passenger transportation in most places, thereby assuming that each household member must be able to buy such a card. In areas where monthly passes do not exist, the price of a one-way ticket to the nearest town in local transport is converted to a monthly amount (Table 4). WageIndicator does not include transport cost for children in the Living Wage If transportation for the children is relevant, for example for the costs of the school bus, it is included in the education cost.Since 2014, WageIndicator has assumed that families use public transport (bus, tram, train, shared taxi or local form of transport). Over time, WageIndicator realised that in some areas of the world people need a car or a motorbike to move around. Therefore, a new question was included in the Cost-of-Living survey to understand the situation in each region and use it in the future to add the cost of the additional component where relevant.The question is: "When you go to work, you primarily use:In the same section, an additional question is included for benchmarking transportation costs, where the interviewee is asked to estimate the cost of transportation for a family of four. (Table 5)Transport costs related to the job, for example for a taxi driver or rider, are collected within a special section of the Cost-of-Living survey, called “Occupation-related items”. These prices are used to calculate Living Tariffs for platform workers in specific occupations (Table 6).Table 4. List of transport-related items in the Transport Items section of the Living Wage data collection One way trip to nearest city (bus, tram, train, shared taxi or local form of transport) Monthly pass (for the use of public passenger transportation in urban places) Gasoline Source: WageIndicator Cost-of-Living survey 2025Table 5. List of transport-related items in the Family Total Expenses section of the Living Wage data collection Estimate what are the minimal monthly expenses of a family of 2 adults and 2 children on following items (please be as accurate as possible): Transportation for the family (assuming the use of public transportation, such as bus, trains, shared taxi, ride-hailing services, local form of transport) When you go to work, you primarily use: public transport taxi (car) mototaxi/rickshaw own car own motorbike/moped/scooter own bicycle I go by foot Source: WageIndicator Cost-of-Living survey 2025Table 6. List of transport-related items in the Occupation-related Items section of the Living Wage data collection Car - petrol/gas/hybrid - economy Car insurance - all risks covered Car insurance - basic Motorbike / scooter Motorbike / scooter insurance - all risks covered Motorbike / scooter insurance - basic Bicycle - normal Bicycle - electric Bike helmet Motorbike helmet Winter waterproof jacket Source: WageIndicator Cost-of-Living survey 2025💡Good to know: From October 2024 onwards, WageIndicator has started calculating the cost of a private car as an add-on component in its data (not included in the basic Living Wage) for all countries and regions.

Question 17

2.4 Drinking water

Accepted Answer

The monthly expenditure on drinking water for a family is collected in the Cost-of-Living survey. This is the cost for bottled water in areas where drinking water from the tap is not available. This cost is then scaled as per the needs of a family and added as a separate component to the Living Wage. The water cost that is collected in the Utilities section only includes water from the tap, which can be used for washing, cooking, showering and - where possible - drinking.

Question 18

2.5 Phone, internet

Accepted Answer

Having a mobile phone and having data to call and use the internet is nowadays the norm across the world, and hence it is important to include phone and internet expenses in the calculation. The WageIndicator Living Wage includes the cost of a monthly mobile data plan providing at least 120 minutes calls and 10GB internet. Although the price of a phone is collected in the survey, it is for now only used to calculate work related costs for platform workers.

Question 19

2.6 Clothing

Accepted Answer

Clothing is part of the essential basic needs. The Living Wage data collection therefore collects information about monthly expenditure for a family of four on clothing and shoes. These expenses are proportionally adjusted for family size. Thus, clothing expenses for an individual are assumed to be one quarter of the expenses reported for a standard family with two adults and two children. In this case, WageIndicator realises that baby clothes might be slightly cheaper, but clothes for teenagers are the same price as for adults (or sometimes even more expensive). These differences are not controlled for in the Living Wage calculation.

Question 20

2.7 Personal and Healthcare Costs

Accepted Answer

The Living Wage data collection includes the basic personal and health care expenses (personal care products and small pharmaceuticals) for a family of four. These expenses are proportionally adjusted for family size. Thus, health expenses for an individual are assumed to be one quarter of the expenses reported for a standard family with two adults and two children.Next to that, the survey also collects data more specifically on the presence of some form of free or universal public healthcare system in the country and on the cost for a basic health insurance, covering one person or one person and the family, and the cost of out-of-pocket expenses. The monthly expenditure for period products and birth-control products, and the prices of personal care products and household cleaning products are also collected. The latest updates to data collection for personal and healthcare items can be found in Annex 2.Table 5. Personal and healthcare items in the Living Wage data collection Is there any public healthcare system in your country? Please provide the monthly cost of the average healthcare costs covering one person, this may include: insurance costs and out of pocket expenses Please provide the monthly cost of the average healthcare costs covering a family, this may include: insurance costs and out of pocket expenses Period products (pads, sanitary napkins, tampons, period panties, etc), per month Birth-control products (condom, pill, patch, etc.), per month Toothpaste Toothbrush Soap Shampoo Moisturizer Toilet paper Hand wash Body wash Cotton swabs Shaving cream/foam Razor Laundry detergent Household cleaning product Dishwashing detergent Sweeper Sponge Source: WageIndicator Cost-of-Living survey 2025💡Good to know: At the 2025 release of Living Wages, the following countries have some form of Free or Universal Healthcare system. This means that either everyone, or specific groups within society (such as babies and pregnant women) are covered universally. These countries include: ​​Armenia, Bangladesh, Belgium, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Central African Republic, Chad, China, Colombia, Congo, Dem. Rep., Congo, Rep., Costa Rica, Côte d'Ivoire, Eswatini, Ethiopia, Fiji, France, Gambia, Georgia, Germany, Ghana, Guinea, Honduras, India, Japan, Kenya, Lebanon, Liberia, Mali, Nepal, Netherlands, Niger, Nigeria, Panama, Paraguay, Romania, Rwanda, Senegal, Sierra Leone, Singapore, Somalia, South Africa, South Sudan, Sudan, Suriname, Switzerland, Tanzania, Togo, Vietnam, Yemen and Zimbabwe.

Question 21

2.8 Education Costs

Accepted Answer

In most countries education is provided in public schools at a relatively low cost. However, there are often additional costs related to supplementary expenses like transport to and from schools, meals, books, stationery, etc. The Living Wage data collection therefore includes the minimal monthly expenses on children’s education, assuming children attend public schools. Based on the reported minimal expenses on education, the monthly expenditure on education is included in the Living Wage calculation, controlled for family size. The cost of education for adults is not included. Updates to data collection for education costs can be found in Annex 2.

Question 22

2.9 Unexpected expenditure, 5 %

Accepted Answer

Because the goods and services vary between countries according to the habits and culture but also over time, it is difficult to exhaustively cover personal needs in all countries. One solution to this problem is to provide for spending on non-specified discretionary purchases.Many Living Wage data providers make provisions for unexpected events in their calculations. The Living Wage Foundation in the UK includes a margin for unforeseen events, but does not specify a fixed percentage margin. Living Wage for Families Campaign in Canada assumes two weeks income from labour on a yearly basis (i.e. approximately 4% of monthly household expenditure). WageIndicator follows Anker and Anker (2017) and adds 5% margin to the final estimate of the cost of living. This 5% margin is also used for the calculation of the Living Income / Tariff.

Question 23

2.10 Mandatory contributions and taxes

Accepted Answer

WageIndicator’s Living Wage data collection assumes that taxes and contributions to social security are part of the essential basic needs. Therefore, one question in the Cost of Living survey addresses the monthly taxes on housing. Additional information about monthly income taxes and contributions to social security are derived from governement country-level tables of taxes by income brackets and social security brackets and and other sources). For more information about how taxes and social contributions are collected and calculated, see Chapter 5.5.

Question 24

3. Data collection of Prices

Accepted Answer

This chapter details how prices are collected for the categories in the Living Wage calculations, as outlined in the previous chapter. It explains the development of the collection since 2014 as well as an explanation of the geographical granularity of the Living Wage data. It also discusses the data collection methods, details about the data collectors and the quality controls during the data collection.

Question 25

3.1 The development of the Living Wage data collection

Accepted Answer

In October 2013, WageIndicator started collecting prices of goods and services. Initially it started with posting teaser on all web pages, asking web visitors for the actual price of a single item. Every day the items in the teaser changed so that after some time all items had been posted. Web visitors who entered a price were then asked if they were willing to key in the prices of other food items. This was the start of the Cost-of-Living data collection and survey. Items asking about the prices of housing, drinking water, transport, and clothing were added (Guzi, Kahanec, & Kabina, 2016).Since 2017 we realised increasingly that the web-based data collection turned out to be biased and not sufficient, and that we missed a lot of data for countries with low internet penetration. Therefore, since 2018, we started to drastically increase the amount of data collectors who do data collection by foot, face-to-face. WageIndicator has since then recruited over 400 local data collectors, developed training modules and software for a online/offline cost-of-living survey. Since 2024, less than 5% of the data is collected via web-based data collection. The primary mode of data collection happens through trained data collectors.The Cost-of-Living survey is translated into all languages of the national WageIndicator websites, and then posted on these websites. By 2015, the Cost-of-Living survey was offered in 84 countries over 70 languages. As of 2025, this now extends to 200countries and 65 languages in 2025 (see link in Annex 1).Over the years the dataset has grown. Table 5 shows that the number of countries with a Living Wages data collection increased from 45 in 2014 to 182 in 2025. In 2019, WageIndicator started quarterly releases. The table below shows the number of countries for the October releases. Image 5 and Annex 6 show these countries.Since its start, the number of items in the Cost-of-Living survey has been stable in terms of items related to Food, Transport, and Housing. In 2021 an extra section ‘Work-related items’ was added for workers in the Gig- and platform industry. In 2023 a section related to Social Participation was added. Additionally, the Personal and Health care section has been improved over time. You can see the latest items updated in the survey in Annex 2.💡Good to know: WageIndicator’s Living Wage data collection has expanded from 45 countries in 2014 to 182 countries in 2025. Until 2019, Living Wage estimates were published annually. However, based on the experience with early clients, quarterly releases proved more practical, as reliable yearly estimates already required multiple data collection rounds throughout the year. Since 2023, alongside the yearly average (based on at least three quarters of data), WageIndicator also provides a Guidance estimate. According to companies’ feedback, the October release has become the preferred moment for the annual update, aligning best with corporate reporting cycles.Table 6. The number of countries for whom WageIndicator has collected Living Wage data Year 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Countries 48 57 64 48 75 114 130 142 164 173 182 Source: WageIndicator Living Wages data collection 2025Image 5. A map showing countries where data collection takes place as of 2025Source: WageIndicator Living Wages data collection 2025💡Good to know: As of 2025, the data collection for only a few countries is financed by projects. The majority of financing comes from data sales (organisations paying for access to WageIndicator’s detailed Living Wage datasets) as well as from certain companies (like IKEA, Kering, L’Oreal, Schneider Electric and Unilever) with a keen eye on making Living payments in their supply chain a reality. They have sponsored public access to WageIndicator’s Living Wage estimates.The very first project which covered cost was the Living Wage Eastern Africa project, which ran from 2012 till 2016. WageIndicator trained 70 shop stewards in price data collection and in a meeting in Ethiopia participants were asked about the costs of living, using a print version of the Cost-of-Living survey (Van Norel, Veldkamp, & Shayo, 2016). For the project Wages in Context in the Garment Industry in Asia (2015-2016) price data was collected using the print survey for nine Asian countries (van Klaveren, 2016). In a project studying the global cut flower industry in the floriculture and agricultural sectors of Kenya, Ethiopia, Uganda, Colombia, and Ecuador, the gaps existing between statutory minimum wages and/or average wages and living wages turn out to be wide (van Klaveren, 2022). Within current projects, WageIndicator and (trade union) partners, now still use WageIndicator Living Wage estimates.Alongside sales of Living wage data sets and public sponsorships, WageIndicator also collaborates with companies to apply Living Wage in practice. This includes multi-supplier pilot programmes in manufacturing hubs such as Southeast Asia, as well as multi-phase implementation trajectories in agricultural supply chains, like palm oil. These projects typically involve a combination of wage data analysis, supplier training, tailored action planning, and monitoring. While they do not directly fund the collection of Living Wage data, they do help sustain and further develop its infrastructure and contribute to financing its broader Living Wage work.💡Good to know: Overall and based on recent data calculated for 2020-2022, gaps between statutory minimum wages and living wages vary between 43 and 493 per cent (van Klaveren & Tijdens, 2022). But there are also countries where the Minimum wages is higher than the Living Wage (typical family lower bound). By October 2025 23 countries of the 182 countries where Living Wage is collected, are above the threshold of Typical Family Lower Bound. See the quarterly updated visual for more on this.

Question 26

3.2 Geographical granularity of the data

Accepted Answer

It is observed that the prices of consumer goods vary not only across countries but within countries as well. This necessitated greater geographical granulation of Living Wage data collection. Since the early 2000s WageIndicator had developed a database with geographical entries for its Salary Survey and then for other apps and web-tools, such as the Cost-of-Living survey. This so-called ‘Region API’ requires the Cost-of-Living survey respondents to identify their region before reporting prices of goods and services as shown in Image 6.💡Good to know: API is an abbreviation for Application Programming Interface and is a piece of software that makes a database accessible, in this case a database with the names of regions and cities for countries worldwide.💡Good to know: As of 2025, WageIndicator provides national and regional Living wages for 182 countries and 3947 regions. For 258 of these regions, WageIndicator can present urban data, peri-urban data for 1711 regions, rural data for 2904 regions, and super-rural data for 777 regions (Zimmerman, Rignall and McAlister, 2023). These countries are still missing. Part will be included in 2026. Afghanistan​, Aruba​, Bonaire, Sint Eustatius and Saba​, French Guiana​, Guam​, Guernsey​, Iceland​, Libya​, Maldives​, Martinique​, Mayotte​, Nauru​, New Caledonia​, North Korea​, Polynesia​, Réunion​, Sint Maarten, St. Kitts and Nevis​, Turkmenistan​, Vanuatu​, Virgin Islands (U.S.)​, British Virgin Islands.Image 6. Screenshot of the region question in the Cost-of-Living survey, showing for the USA the list of states̵, and after selecting California Commuting Zone 69, showing the choice of cities in the counties within this commuting zoneSource: WageIndicator Cost-of-Living survey 2025The WageIndicator Region API allows data collectors and other users to easily identify where they live or collect data. As of 2025, the Region API covers 236 countries and territories, and specifies in total 4288 provinces/states/counties within these countries. The so-called level 1 regional entities are shown in grey in Image 6. Once a province/state/county is selected, a second level option allows for selecting cities, villages, or rural areas, shown in blue. In some provinces/states/counties the second level does not include all cities, since the list of cities would be too long in a survey. In these cases, only the large cities are listed and for the small cities or villages the choice is offered for selecting ‘A small city (10,000 - 100,000)’ or ‘A village (less than 10,000)’. The label set of the Region API is downloadable (see Annex 1).In 2021, WageIndicator started a process to make sure that all names of all provinces/states/counties in the Region API reflect the most recent administrative divisions and could be mapped in common data visualisation programs like Google Data Studio and Tableau. As of October 2024 this process is about 70% complete, with regions in most countries improved for easy visualisation. Specifically in India, China and the USA, the API was improved to include more granular regions. In India, the API was made granular by moving from states to divisions comprising a group of districts while in China, the provinces were replaced by prefectures/prefecture-level cities for the same purpose. For the USA, we improved the API by using Commuting Zones as per the USDA Economic Research Service (ERS) released in 2010. In terms of numbers, WageIndicator now has data for 145 regions in India, 359 regions in China, and 625 regions in the USA.The Region API allows for a high degree of geographical granularity. Calculating Living Wages assumes enough price observations in each area. Therefore, the most applied granularity is at the first level of the Region API, hence for provinces/states/counties. If the number of price observations at this level are not sufficient, the provinces/states/counties are clustered into four groups, the so-called “Region” cluster groups 1 to 4. A cluster is a group of provinces which are aggregated according to the size of the population of the largest city in the province.The geographical granularity of the Living Wage data of course depends on the resources to collect the data of prices as discussed in Chapter 2. Over the years, WageIndicator succeeded in collecting more price data and therefore could provide Living Wages for more provinces/states/counties. In case of small countries or in case of insufficient data points, the Living Wages are presented for the entire country only.Since October 2023, WageIndicator has also aimed to differentiate Living Wage estimates along urban and rural lines, by identifying four levels: urban, peri urban, rural and super rural. Nevertheless, the urban / rural data and of city level data is not yet meant for guaranteed implementation year-on-year, since this type of granularity cannot be guaranteed each quarter and each year for all regions - for financial reasons. It does help to understand the estimate better. City level and super rural estimates can be provided on demand.

Question 27

3.3 Decentralised data collection, centralised data storage

Accepted Answer

As detailed in Chapter 1, a Living Wage must be an income necessary to provide workers and their families with the basic necessities of life. For the Cost-of-Living survey this implies that prices are collected from shops and markets in low to lower-middle income areas, including housing prices and utilities of these areas. In some countries, and only when possible, data collectors also collect prices from webshops, such as from supermarkets. Data collectors are trained in how to collect prices at the cheapest supermarkets, open day markets or online webshops from supermarkets.When collecting prices from webshops, data collectors are told to avoid webshops where prices are in US Dollars (unless it is in countries where the USD is the national currency). Webshops in US Dollars generally target expats, who usually can spend more. Some food items in the Cost-of-Living survey explicitly refer to a basic quality, thereby excluding luxurious items.Regarding housing prices, prices given by Airbnb, Booking.com or any other hotel site are not acceptable. Data collectors are trained to research and understand to what extent the housing market is online or offline in the country and adapt the data collection accordingly. They are trained and tested to avoid expensive rental websites in regions where houses are rented through local house brokers or available through housing subsidy schemes (for poorer regions). If the rent is given on a weekly basis, data collectors will convert it to a monthly amount as required in the survey. In case of face-to-face surveys (through which data is collected in more than half of the countries in our database) they collect data and interview people in low- and low-middle class areas where workers live.On a yearly basis data collectors get at least a 1,5 hours training or refreshment training. The data collectors are tested after the training with a test of 15 questions.The Cost-of-Living data collection takes place through the following five means:The Cost-of-Living survey app, used for face-to-face data collection through interviewsThe Cost-of-Living survey app, used to note prices in markets and shops either online or offlineThe Cost-of-Living paper and pencil survey, used when the survey app cannot be used for any reasonThe Cost-of-Living web survey, accessible on national WageIndicator websitesData from external sources. Sources will be explained at the end of this section.Cost-of-Living data collection has been a web-based operation since its inception, with centralised data storage. An app was developed in 2015 that allowed data collectors to work offline and archive the data once they have internet access. Data can be entered into the app from any place in the world.By October 2025, in 90 out of 182 countries Cost-of-Living data was collected face-to-face. Online data collection took place in 30 countries, with hybrid data collection in others. Part of the face-to-face data collection is done through paper surveys, while the rest happens directly through the app on cell phones or tablets. The survey questions are identical across all mediums. Survey data can use the app even when offline and upload the data later, which is important in areas where the internet is not always available or is expensive. The app also allows for data collection in all countries and languages in one place.💡Good to know: The Cost-of-Living survey app can be answered in local languages and English [master]. Such as for example in Costa Rica where the survey is shown in Spanish and English, as Image 7 shows. The app has options for 200 countries and 65 languages. The app requires data collectors to identify the country for which the data is collected. By doing so, the currency and the regions are aligned for this country. However, some countries use multiple currencies and in these countries the app allows users to select the relevant currency of the prices: in Zimbabwe, US Dollar, South African Rand, Zimbabwean Dollar and Zimbabwean Gold are the options; in Lebanon, Lebanese Pound and US Dollar are the options.💡Good to know: To make sure that only trained WageIndicator data collectors can access the app, the app requires a 15-digit code called the ‘Surveyor ID’. Every quarter, all data collectors get a new code. The code and the data collectors are linked as such that it becomes visible in the dataset which data collector entered which data and when. This is good both for the data collector as the WageIndicator team can directly support in case of any issues, and it can be used for quality and assurance checks.Image 7. Selection of country and regionThis screenshot from the WageIndicator Cost-of-Living app shows how a country and language can be selected. In the case of Costa Rica the survey can be done in Spanish and English. Data is always collected country / region specific.Source: WageIndicator Cost-of-Living survey 2025💡Good to know: Webshops - simple and complex - have become commonly used by many people for their daily needs, offering a new avenue for data collection. To accommodate this, the Cost-of-Living survey app now asks data collectors whether they accessed a webshop to collect price data, as Image 8 shows.Image 8. Extra question at the in the Cost-of-Living surveySource: WageIndicator Cost-of-Living survey 2025💡Good to know: During the COVID-19 pandemic, face-to-face surveys proved challenging, so price data was collected partly based through the cheapest webshops. If no suitable webshops were found, face-to-face data collection was done where possible after double-checking with local contacts (Korde et al., 2021).Whereas shops and markets provide price data for just one locality, webshops can typically set prices for larger areas, ranging from a city to a province or even an entire country. Webshops are classified according to all provinces they serve, and the prices collected from the webshop apply to these regions.In recent years, some data collectors have found it easier to use printed versions of the surveys, as shown in Image 9. This however does require the results to be entered into the app afterwards, and increases the risk of data entry errors. Some data collectors find it useful to collect data by means of photos of food prices they take at markets or shops, keying in the prices later.Image 9. Data collection in Richard Toll, SenegalSource: WageIndicator Foundation, Ⓒ Paulien Osse 2023The Cost-of-Living web survey is posted on all national WageIndicator websites, as shown in section 3.1. Every day, a different question is posted to each web page of a national WageIndicator website, requesting web visitors to enter the price of one food item. Though this is how data collection began, now only 4% of the data comes in through the websites.WageIndicator complements its Living Wage data collection with data from external sources. External data sources are:World Food Programme’s Global Food Prices Database (WFP Vulnerability Analysis and Mapping (VAM), 2023) for data on food pricesNumbeo data for prices regarding some food data.Data from national statistical agencies for information regarding health cost, phone cost, and education cost.All data from various sources are properly checked and outliers are removed. Prices are then incorporated into a comprehensive price database, comprising over 9 million of price points, that is used for living wage calculation.

Question 28

3.4 The data collection process for the Cost-of-Living survey

Accepted Answer

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Question 29

3.4.1 The data collectors for the Cost-of-Living survey

Accepted Answer

Data collectors are critical for the success of the collection of prices. WageIndicator employs data collectors with a background in survey research, data collection and statistics. As the number of countries for whom Living Wage calculations has grown over time, so have the number of data collectors. They are organised in teams covering regions within countries, regions, language groups, parts of continents, with one or more team managers. Across the world and on most continents, data collection is done face-to-face. For less and less countries in Europe and North America, data collection is hybrid or online.Managers oversee the data collection processes, train the data collectors, and provide feedback. Groups are trained together in webinars and special sessions are organised to answer any queries they may have. The data collectors collect price data from local citizens, open markets, supermarkets. Some data collectors work directly under global managers of data collection, others work under supervision of regional operating agencies.The efforts of all local data collectors are complemented by interns. All interns are screened before selection. The interns work for a minimum of two months full-time, but usually it is 6-9 months part-time. Interns always work under supervision of global data collection managers.Table 7. Characteristics of the data collectors in 2024 Persons* Regions Training Experience 1 Interns during one year approx. 120 interns Usually countries where English is the main language 2 hours training, and weekly update of 20 minutes, test Minimum 2 months 2 WageIndicator team members during one year Approx 300 team members; they are specialised data collectors, work on year contracts * Most countries in the world. Especially in countries where online supermarkets or other data is not always available or up to date. Written instructions, instruction videos, and quarterly feedback quality updates, test From 2 till 6 years 3 Web users WageIndicator national websites 4,678 users in 2021, 4,759 users in 2022 and 3,860 users in 2023, 2105 users in 2024 and 861 users in 2025 ( 1 price per user) Medium/high income countries No training Unknown Source: WageIndicator Foundation 2025In 2025, interns came from FLAME University, Dokuz Eylül University, University of Namibia, Ahmedabad University, Bucharest University of Economic Studies, Boston University, Central European University, Centro Universitario de Desarrollo Integral, University of Bath, Kenyatta University, University of Delhi, Monroe University, Vietnamese-German University, University of Economics Ho Chi Minh City, Foreign Trade University, Madras School of Economics, Sai University, National University of Singapore, University of Madras, Savitribai Phule Pune University, Fulbright University Vietnam, Ewha Womans University, Hanoi University of Science and Technology, National University of Singapore, National Dong Hwa University, Dickinson College, Diplomatic Academy of Vietnam.

Question 30

3.4.2 Instructions and training for the data collectors and quality controls

Accepted Answer

WageIndicator provides online training via Zoom, WhatsApp or their preferred (and safest) means of communication, in written instructions, instruction videos, and quarterly feedback quality updates. Trainers are global and regional WageIndicator managers. Global managers oversee the whole process of recruiting data collectors, assigning jobs to data collectors, calculation, and use of the data by companies, NGOs and trade unions. Regional data managers oversee the process of assigning jobs to data collectors and have insight in the quality of the work done by data collectors.The data collectors correspond regularly with their team managers or directly with their global managers, confirming that the information they are collecting is valid. Table 6 provides an overview of the training provided.Trainers do a small test to check their knowledge of the data collection process.💡Good to know: All data collectors and their team managers get the same instructions and training, whether it is for collecting data from webshops, or face-to-face and then keying in the data in the Cost-of-Living survey app. The training usually takes 90 minutes. Data collectors take a refresher training every year, where feedback on data collection and on the survey is also taken into account.Trainings for data collectors focus on the following issues:To use the surveyTo upload stored dataHow to select appropriate areas for data collection, in terms of costsTo avoid the poorest and richest areas, where possibleTo go to areas where workers live, not the tourist or expat areaSelect respondents randomlyTo take time to talk to respondents while following the surveyTo collect food prices at the market/shops randomlyTo collect housing prices regarding decent housing (safe, solid roof, water, electricity, heating, sanitary toilet facilities)Data collectors should be:Accurate and preciseGood with numbersAble to communicate with people on equal levelMultilingualAble to use a smartphone or digital deviceWageIndicator has learned some useful practices through years of data collection:Sometimes it is better not to use a smartphone, but a printed surveyInterviewing in pairs is sometimes more efficient, faster and safer than doing it alone.Some countries report that women are better trained to talk about prices with women, men are better at talking about prices with men. Nevertheless mixed-gender teams seem to be the bestData collectors usually know that the price is collected to calculate Living Wages, yet data collectors are trained not to tell their respondents that the prices are collected to calculate Living WagesData collectors never know which companies might use the Living Wage estimatesIf extra data is needed for a client of WageIndicator, the name of the client is not shared with neither the trainer, the data collector nor the respondent. (In 2025 this was not needed, there was enough data for enough countries and regions within.)If needed for authorities or safety purposes, data collectors are provided with a WageIndicator introduction letter or other safety measures are taken.On a daily basis the WageIndicator team managers check the data collected. Specifically, the housing prices are cross checked across the different surveyor groups operating simultaneously (Korde et al., 2021).All data collectors have a unique code related to their name and email address which they must use to collect their data. Each price in the database can be traced back to an individual data collector. However, the code is not required for web users who key in data on the basis of a request as shown in Image 4. In general, web users key in one price only.Global data managers, regional data managers and data collectors in the countries are in touch with each other on a daily basis through various instant messaging applications.All data collectors have undergone WageIndicator’s annual safeguarding training and adhere to WageIndicator’s Code of Conduct.

Question 31

3.5 Quality controls

Accepted Answer

WageIndicator updates its Living Wage estimates every quarter to keep up with changing price levels. The quality of national and regional Living Wage estimates are rated internally by assigning a Stability and Data Quality Code to each country and region, based on a comparison with the data for the same country/region from the previous quarter. Data fluctuations have been tracked since January 2019.When a 10% change is observed, a thorough check is conducted to assess whether there is an issue with any of the input components. If such an issue is found, it is corrected in the script and the estimates are recalculated. If no issue is found, the data collector is contacted for an explanation. If even this does not suffice, the estimate is retracted from the database and in the following quarter an additional team is assigned to collect data independently from the existing team. If their results differ, estimates are adjusted as needed and in some cases the team of data collectors might be replaced. Table 8 shows the levels and frequency of quality checks.Living Wages are checked for consistency over time. In case structural discrepancies are detected, WageIndicator consults national experts to analyse and correct the source(s) of bias. These experts are mainly academics from the WageIndicator network. Next to that WageIndicator gains expertise from multinational clients by talking to their local HR teams. In case of issues, WageIndicator brings HR experts from different clients together and discusses the topic. Thanks to these efforts, the data also becomes more accurate over time.Feedback on methodological questions and the quality of Living Wages is also obtained through discussions in webinars (see Annex 4) involving academics, employers, trade unions and data collectors. All relevant feedback can be integrated in the survey over several quarters. One example of this is a change of wording because of a “wrong” translation, but also the integration of extra questions in the Cost-of-Living survey related to social participation. This specific component of social participation has not been finalised yet. Decisions on this will be made in Q1 2026.Table 8. Levels and frequency of quality checks Quality checks Yearly Quarterly Daily Survey Survey correct - does it produce the correct data from the correct country / region x Survey correct - new countries / item language / translation checks x x Survey - region / city - correct x x Survey items still relevant x Data collection Data collectors - recruiting / screening x Interns - recruiting / screening x Data collectors training x Data collectors test x Interns training x x Offer option to data collectors to report in case they included mistakes x x Assign extra data collectors - they don't know each other - in one country. (f.e. face to face and online) x x Data process Check for outliers (not above or below a defined number) x Check for currency mistakes x Check for currency mistakes in case of more currency options (Lebanon, Venezuela, Zimbabwe) x Check for consistency between quarters x Check for relation with World Food Programme database x Check for the consistency between the components x Check the relation between housing and Minimum Wages x Check for tax and social security updates x x Update for inflation twice a year x Feedback Feedback during data collections process x x Feedback on the basis of estimates by all data collectors x Feedback from clients on the basis of estimates x Double check Calculations of family-types x Year averages x Comparison quarters / stability over quarters x Include Living Wage/Income Guidance data set x Minimum Wages x Check requests from clients (MNE / NGO / Trade Union / web users) x x Source: WageIndicator Living Wage Data Collection 2025

Question 32

3.6 Sampling strategy for Cost of Living estimates

Accepted Answer

This section details WageIndicator’s data collection strategies to avoid bias in the samples:For the data collection of prices from shops/markets, the sampling frame consists of shops/markets located in low and low-middle income (where workers live) areas, because the Living Wage data collection aims at the lowest prices for the defined food basket. The shops/markets are sampled by random walks in these areas. WageIndicator data collectors go to these shops/markets and register the prices, similar to what mystery shoppers in retail establishments do. This data is collected by WageIndicator data collectors using the Cost-of-Living survey.For the data collection of prices from webshops, the sampling frame consists of all webshops that can be found online in the selected region/city, and the sample consists of the webshops with the lowest prices for the selected food basket; this data is collected by WageIndicator data collectors using the Cost-of-Living survey.For the data collection of housing prices from the respondents responding on behalf of their households, respondents’ locations are selected in low, low-middle income areas, and real estate agents may also be consulted.For the data collection of housing prices from real estate agents, the low, low-middle-income areas are selected and various real estate agents are visited;For the data collection of prices from web visitors of the more than 200 national WageIndicator pages on work and wages, the Cost-of-Living web survey in their national languages is used. Here no sampling frame exists as the data collection is based on a non-probability web survey.For the data collection of food, data from external sources are added, when available and when assessed to be reliable.An alternative strategy of collecting price data is by means of household expenditure surveys. These surveys primarily aim to measure expenditures, but they are also used to generate data on prices. However, the price data from expenditure surveys are often less granular compared to the price data collected from shops, markets and other outlets, and they most likely rely on respondents' memory, hence less reliable. Whereas WageIndicator’s Living Wage data collection targets low, and low-middle income strata of cities and villages, expenditure surveys mostly aim to sample the full population of households. To meet the demands of data collection of prices in low, low-middle income areas, usually a subsection of the sample, large sample sizes are needed. Instead, WageIndicator prefers to focus on data collection in shops and other outlets and by interviews in areas where workers live.Measurement errors are likely to be small as the prices are directly observed by the data collectors. When prices are collected from volunteer web visitors, they are not urged to report the lowest prices but to report the prices they paid today or yesterday. The latter price data collection can be prone to selection bias. WageIndicator assesses the possible bias of this data in the total sample as small, because the large majority of data is collected by trained data collectors.💡Good to know: What happens if data collectors key in wrong numbers? WageIndicator applies a strict regime to control for data-entry errors. Statistical methods are applied to identify data-collector related outliers, as well as outliers when comparing to previously collected data.

Question 33

3.7 When there is not enough data, or when it’s not reliable

Accepted Answer

There are clear thresholds on the minimum number of prices collected per region/country per component.For food there should be between 2000 and 6000 prices per region; if less data is available, there will not be a Living Wage estimate for that quarter.For housing between 50 and 200 observations are needed to calculate housing for a country-level and 20 and 200 observations for a region-level Living Wage.For transport a minimum of 20 observations are needed for country-level estimates and 20 observations for region-level estimates.20 observations are needed to calculate on national and regional level for health, education, clothing/footwear, phone and drinking water expenses.💡Good to know: If there are not enough observations at the regional level, national averages are applied for Non-Food, Non-Housing components in the regional Living Wage estimates, as these are smaller expenses and usually don’t vary too much per region. If there are not enough observations at the national level (for health, education, clothing/footwear, phone and drinking water expenses), data from countries within the same income group (as per the World Bank country income grouping) are used by comparing the ratio of the components to a set of minimum wage levels set by the ILO and from WageIndicator’s Minimum Wage database.

Question 34

4. Calculation of Living Wages, Living Income and Living Tariff

Accepted Answer

This chapter focuses on the calculation of the Living Wage, and the related estimates for a Living Income and Living Tariff. It details the data streams in the Living Wage data, the assumptions underlying the Living Wage calculations, the components of the Living Wage calculations, and the features of the Living Wage dataset.The Living Wage is applicable to employees (workers that perform specific tasks for a business in exchange for regular pay and typically receive benefits, overtime pay and vacation). The Living Income applies to farmers, smallholders and family businesses. The difference between the Living Wage and the Living Income resides in social security percentages: while the Living Wage includes the social security contributions that have to be paid by the employee, the Living Income includes both the employee’s and the employer’s parts. Also, while the Living Wage assumes that there is another family member who is contributing to the family budget, the Living Income is one income for the business and covers all the family costs (assuming that both parents are working for the same business).Additionally, WageIndicator also calculates a Living Tariff, which applies to self-employed people and platform workers, who usually set their tariff and are paid by the hour or per task. The Living Tariff includes taxes and social security in the same way as the Living Income, but also occupational items (laptop, motorbike, car, depending on the job) and extra time for training, administration and other activities, as well as any job-specific costs. The differences between a Living Wage, Income and Tariff are explained in Table 9.The Living Tariff is calculated for a self-employed person in general and more specific for a set of common professions. After all, a taxi driver incurs different expenses than a freelance designer. The Living Tariff makes it clear to those who are not on a pay-roll what they must earn at least per hour to arrive at a Living Tarif. . Because the variables may vary per worker, WageIndicator has developed an interactive tool for the countries India, Indonesia, Kenya, the Netherlands, Pakistan and South Africa where workers can adjust the variables to the situation that applies to them.:Table 9. The differences among Living Wage, Living Income and Living Tariff Living Wage Living Income Living Tariff Applies to: Employees Farmers, small holders and family businesses, even one parent and youngsters Self-employed (gig workers, freelancers, contractors, daily workers) Pay period it is calculated for: Month / year Month / year Hour Social security included: Contributions to be paid by the employee Contributions to be paid by the employee and the employer Contributions to be paid by the employee and the employer Number of earners per family: Varies per country, depending on the labour participation rate, the national unemployment rate and the national part-time employment rate, using the following formula: Earners per family = 1 + {Average Adult Labour Participation Rate × (1 − Unemployment Rate) × (1 − [Part-Time Employment Rate÷2])}. The data used is from the last 10 years (2014-2023) and the earners per family are capped at a minimum of 1.5. It assumes that the other earner gets a portion of the Living Wage. One, the two adults count together as one earner. Varies per country, depending on the labour participation rate, the national unemployment rate and the national part-time employment rate, using the same formula used for the Living Wage. It assumes that the other earner gets a portion of the Living Wage. Additional occupational items and extra time for training, administration and other activities: No No Yes Source: WageIndicator Living Wage, Living Income, Living Tariff database, 2025

Question 35

4.1 The Cost-of-Living database

Accepted Answer

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Question 36

4.1.1	The Cost-of-Living database

Accepted Answer

The price data in the Living Wage database are collected through the Cost-of-Living survey. The screenshot of the survey in Image 10 shows that the data collectors can select a category for which they want to enter prices, be it food, transport, housing, expenses, or occupational cost-related items. The survey is always presented in a national language and a language switch to English is facilitated. The region is selected based on the locality of the interviewer, but can be changed depending on the region where the data is collected. For each item, a price can be keyed in and its pre-set unit appears automatically e.g. kilo, litre or other units of measurement. Data collectors can opt for keying in just one or few items if they have not (yet) collected the prices for other items.The data collected in the Cost-of-Living survey include millions of prices that are all checked. A codebook is available regarding the variables in the dataset. The codebook consists of:value labels of the item ids in the Cost-of-Living survey (see Annex 5)value label of the unit ids in the Cost-of-Living dataset. The unit id’s have been stable over the years; the units are presented both in the app and in the online Cost-of-Living survey (see Annex 6)variable labels in the Cost-of-Living dataset, see (Annex 7).Image 10. Cost-of-Living survey structureSource: WageIndicator Cost-of-Living survey 2025

Question 37

4.1.2 WageIndicator data streams and data generating devices/sources.

Accepted Answer

WageIndicator’s Living Wage database has been created through over nine million price recordings from several sources since 2014.💡Good to know: In 2025, 1,228,897 prices (primary data) were collected using the WageIndicator Cost-of-Living web survey and app with 99.70 percent of that being collected by trained data collectors.As described in Chapter 3.3, the prices in the Living Wage database stem from five sources, namely, from the Cost-of-Living web survey, the Cost-of-Living survey app, the Cost-of-Living survey print, and external sources. Table 10 and 11 depict how the data is distributed over the first three categories used in the October 2024 release of living wages.Table 10. Tracking data streams from different WageIndicator platforms - October 2025 Platform used Data collector % of total collected prices used for latest calculation Source traceable in dataset 1 Data via WageIndicator website - online Cost-of-Living survey Mainly generated by web users, rarely by trained data collectors 0.30% yes 2 Data via Cost-of-Living survey app Collected by trained data collectors who use a mix of face-to- face, interviews and data generated from webshops 99.70% yes Source: WageIndicator Foundation 2023Table 11. Tracking data streams from different sources Source Data collector % of total collected prices Source traceable in dataset 1 Data from webshops* Collected by trained data collectors only 48.05% yes 2 Data from regular shops /face to face surveys Generated by trained data collectors and web users (less than 2 %) 51.95% yes *those who selected the “internet shop” question as shown in Image 8Source: WageIndicator Foundation 2025Data from ‘external sources’ are predominantly sourced from the World Food Program and Numbeo.The Living Wage data collection is based on a sound IT system for centralised data collection that ensures stable data collection over time and across countries. Well-developed scripts are used to call for the data from external sources. These scripts are invaluable tools for efficiently accessing and managing data from external sources, such as the International Labor Organization (ILO) and International Monetary Fund (IMF). These scripts are designed to automate the process of retrieving, checking for updates, and downloading the latest available data from these organisations, ensuring that the information is always current and readily accessible.

Question 38

4.2 Assumptions underlying the calculation of a Living Wage

Accepted Answer

WageIndicator Living Wage calculation includes a set of assumptions, namely:a Living Wage is calculated for adults who are of economically active age (18 - 65) and competent to manage their family budget efficiently;individuals without children rent a one-bedroom home and households with children rent a two-bedroom home;individuals and families for whom the Living Wage estimates are most relevant are assumed not to own a motorbike or car and therefore need to rely on other means of transportation (though - for future use - we have an extra question in the Cost-of-Living survey that checks whether this assumption is accurate in all countries), usually public transport; children of such families commuting to schools can travel for free or with a substantial discount;all family members are in a condition which allows them to work at full potential;meals are prepared at home and ingredients are purchased from supermarkets or at markets in the lower price range;expenses on clothes and footwear are accounted for;it includes a phone tariff of a monthly mobile plan (at least 120 minutes calls and 10GB internet);housing expenses refer to houses or apartments that are not centrally or up-market located and not located in a slum or an unsafe area;adequate housing is assumed to have permanent walls, solid roofs, adequate ventilation, and has electricity, water, heating - if needed in that area - and sanitary toilet facilities. Costs related to heating, electricity, water consumption, routine maintenance and repair and garbage collection are included in housing costs;a standard or ‘normal’ working week is assumed. This ‘normal’ working week, which differs per country, should not be more than 48 hours maximum (ILO Convention 1, 1919);a Living Wage is the monetary equivalent of the regular income, including any regular in-kind provisions;a Living Wage is the regular monthly income from labour; irregular or incidental income is assumed to be used for extraordinary expenses;a Living Wage is estimated for employers who (should) pay the local Living Wage voluntarily, unless contracts or (collective) agreements are made with workers groups, trade unions and/or buyers;the calculation of WageIndicator Living Wages only includes basic expenses;a Living Wage reflects the local living standards and needs of workers and their families;a Living Wage is calculated as a reference income of a full-time worker in gross terms.💡Good to know: WageIndicator collects and calculates Living Wages following similar principles adopted by other Living Wages data collectors and the ILO (2024). The methodology is versatile and can be applied in all national and regional settings, and is sector-agnostic. The resulting data comparability is the foundational condition for the calculation of Living Wages that are consistent globally and over time.

Question 39

4.3 Living Income

Accepted Answer

The Living Income estimate is relevant for (small) farmers/farming households. Yet, it may be applied just as well to all households where income earners (normally both adults in the family) own their own business, which is usually a small-scale family enterprise, similar to small landholders. Normally both adults in the family work in the business. This is different from the Living Tariff, which applies to a person who works alone as self-employed.The assumptions for a Living Income are the same as for those Living Wage earners at a payroll, but there are some differences. The Living Income estimate accounts for the cost of essential necessities in a household, varying with the region and country where they live and work. Thus the Living Income estimates offered by WageIndicator reflect the needs of a typical national/regional household. A typical household is assumed to consist of two adults, plus the number of children as derived from the national fertility rate of a country given in the World Bank database (2020-2022). In this respect, WageIndicator extends the practice of basing calculations on the standard family of 2 (adults) plus 2 (children), by allowing for variation in family sizes and estimating Living Incomes which more accurately depict varying living requirements.To resume the definition, a Living Income is the amount of money a household must earn to achieve a decent standard of living. This income must be earned by the two adults in the family. The Living Income is therefore made up of all the diverse sources of income that a household may receive through the labour of two working adult members. It is assumed that in this household both adults work the full working week. Their combined income (Living Income) should be sufficient to cover the costs of the indispensable necessities that their household needs for a decent living.The indispensable items are similar to the elements making up the cost of living used to arrive at a Living Wage, i.e. Food; Drinking Water; Housing; Transport; Phone and internet; Clothing; Healthcare; Education and Unexpected expenses. See for a detailed overview of these necessities Chapters 2.1 - 2.10 above.The other main difference with the Living Wage is that the Living Income includes taxes and social security contributions that are normally due by the employer (thus excluded in the Living Wage calculation). Since the two working adults are not employed (have no permanent employers) the part of social security premiums and taxes normally paid by employers on behalf of their employees must be borne by these working adults themselves, so the Living Income calculation must include the equivalent of these extra costs the self-employed household/family business has to pay. Therefore, WageIndicator’s calculations also include the taxes and mandatory contributions that the typical household must make as part of their business venture (the part that would otherwise be borne by an employer). This information is updated twice a year by the WageIndicator team through desk research.Table 12. Living Wage, Income and Tariff Data for the Pakistan region of Sindh Country - region Living Wage Guidance - typical family - 2+national fertility rate - national labour participation rate - lowest - per month Living Income Guidance - typical family - 2+national fertility rate - national labour participation rate - lowest - per month Living Tariff -typical family - 2+national fertility rate - national labour participation rate - lowest - per hour (basic, no work-related equipment or overhead) Living Tariff -typical family - 2+national fertility rate - national labour participation rate - lowest - per hour (including work-related equipment or overhead for a motorcycle deliverer) Pakistan - Sindh 61007.15 PKR 107958.48 PKR 355.88 PKR (68,344.70 PKR per month full-time) 608.21 PKR (103397.84 PKR per month full-time) Source: WageIndicator Foundation, October 2025

Question 40

4.4 The components in the Living Wage data

Accepted Answer

The calculation of the Living Wage is composed of the following components, notably food, housing/energy, transportation, health, education, and other expenses like phone and internet, clothing, personal care. Costs for childcare and private care costs are not included in the basic set of components, but seen as ad ones. This section provides an explanation of how each component of the Living Wage is calculated.

Question 41

4.4.1 The calculation of food costs

Accepted Answer

WageIndicator calculates the food costs using two data sources. The first is the WageIndicator Cost of Living Survey, which is explained in detail in Chapter 2 and which collects the actual prices of 70 food items. The second is the UN Food and Agriculture Organisation (FAO) food balance sheet, which presents the consumption of 81 food items measured in kilocalories and in grams per person per day and reflects the food preferences in a country. Two examples of this for Vietnam and Ghana are presented in Annex 10.To ensure that the differences between food consumption patterns amongst countries are incorporated in the calculation, WageIndicator calculates the food basket for a model diet for each country based on the data from the FAO Food balance sheet. To avoid the negative bias in the quality of the food basket in low income countries and to make sure the country-specific food consumption is balanced with the provisions for a healthy diet, the basket is checked against the balanced diet defined by the World Health Organisation (WHO). WHO defines a balanced diet to comprise less than 30 percent of calories from fats, less than 10 percent of calories from free sugars, less than 5g of salt per day and at least 400 grams of vegetables and fruits per day (WHO, 2020). To make the FAO Food balance sheet comply with the WHO provisions, the following adjustments are made when creating the WageIndicator food baskets:Fats, Animals, Raw - adjusted to 0% of food supplyPig meat - adjusted to 60% of food supplyMilk - Excluding Butter - adjusted to 50% of food supplyOils - adjusted to 50% of food supplySugar - adjusted to 60% of food supplyFruits and Vegetables - increased to 400 grams for countries with intake less than 400 grams/person/day.WageIndicator counts for 5 percent for the total percentages of fats and sugar. Annex 10 gives a practical insight into this with the food baskets for model diets for Ghana and Vietnam (FAO, 2022).All WageIndicator model diets assume a daily consumption of 2,100 calories per person, which is the nutritional requirement for good health proposed by the World Bank (Haughton & Khandker, 2009). The model makes no distinction between adults, children, or pregnant or lactating mothers' food requirements. The principle that WageIndicator adheres to is that adults and children have 2,100 calories a day. In some cases children will eat more, sometimes less. Pregnant women might eat a bit more during the last months of pregnancy and the lactation period. The food costs calculation assumes that the food is prepared at home and purchased at the lower prices from supermarkets.The data collectors are provided with detailed instructions on how to report the prices for the food items. These include instructions such as to exclude wrapping when reporting the costs and indicate the quantities precisely.

Question 42

4.4.2 The calculation of housing and utility costs

Accepted Answer

Housing costs are challenging to calculate because dwellings differ and local prices show substantial variation. The calculation of housing costs should therefore take into account quality criteria and depart from a minimum acceptable housing quality (e.g. appropriate number of rooms, location). In the WageIndicator Cost-of-Living survey respondents are asked about their house rents, electricity, water, garbage collection, internet, and taxes on housing. Respondents also indicate the size and location (inside or outside the city centre) of their apartments or houses.A typical rent in the lower part of the price distribution (at 25th percentile) and in the middle (at 50th percentile) of the price distribution (median price) is included in the calculation. The housing cost for a family or an individual refers to a typical rent for a two-bedroom apartment respectively an one-bedroom apartment in an average urban area, outside the city centre, not centrally located, nor up-market, but also not located in slums. The high degree of geographical granularity of the prices collected allows the estimation of the reference housing costs for a large number of regions.Next to housing cost the role of utilities within the Cost-of-Living survey has been improved since July 2024. It has been separated from the initial housing section and is now a separate chapter in the Cost-of-Living survey. This relates to questions for energy - including electricity, gas (heating and cooking), heating and/or cooling, and other utilities used at home - water, garbage and ​​other monthly costs associated with the house, such as service/maintenance costs, taxes for dwelling, or city/region specific costs.

Question 43

4.4.3 The calculation of transport costs

Accepted Answer

Transportation is an important cost for households because many people commute for work or travel for daily activities (e.g. shopping). The assumption is that for families the Living Wage does not include the ownership of a motorbike or car and that they have to rely on other means of transportation. As public transport service is commonly available in most places, the price of a regular monthly transport pass is regarded as the transport cost for an adult. The average price of such a monthly pass is used as a meaningful approximation of transport costs, also for families in areas without local public transport. The price of a monthly pass is asked in the WageIndicator Cost-of-Living survey. The cost of transport for a family household is calculated as twice the price of a monthly adult pass. In many places, children commuting to schools can travel for free or with a substantial discount. Therefore, in the Living Wage calculation it is assumed that children travel for free.From October 2024, WageIndicator presents next to the transport component (public transport), the cost for the use of a private car. This is shown as an add-on, so it is not included in the basic Living Wage calculation. See more in Chapter 4.4.7.💡Good to know: Transport costs related to the job - e.g. the car or the motorbike costs for a taxi driver or a rider - are only used to calculate the Living Tariff for platform workers.

Question 44

4.4.4 The calculation of personal and health costs

Accepted Answer

Many countries provide at least basic public health care services. Yet, additional expenses are often required for medication not available from public facilities or for private healthcare in emergency situations. In addition, if households temporarily lose income due to health-related absence from work they still need to be able to cover their basic living expenses.The WageIndicator Cost-of-Living survey asks respondents about the minimal monthly expenses on health care for a family of two adults and two children. Next to that, the survey also collects data more specifically on the presence of a free universal healthcare system in the country and on the cost for average health care costs covering one person and/or one person and the family, including both insurance costs and out of pocket expenses. Based on these two pieces of information, the monthly expenditure on health is included in the Living Wage calculation. Given that the healthcare insurance for working adults sometimes includes the partner and/or children, the health expenses for an individual and a family are calculated separately.In addition to that, data is collected specifically on personal and health care costs: the monthly expenses for period products, birth-control products, personal care products and household cleaning products.

Question 45

4.4.5 Education expenses

Accepted Answer

Education in public schools is provided at relatively low cost, but additional costs are related to supplementary materials and fees. Education expenses are typically included in the Living Wage. The WageIndicator Cost-of-Living survey asks respondents about the minimum monthly expenses on education (assuming that children attend public schools) for a family of two adults and two children. Based on this information the monthly expenditure on education is included in the Living Wage calculation.Expenses on education for adults are not considered in the Living Wage calculation. As the concept of a Living Wage defines the basic needs for a family, it does not provide for families to participate in advanced education, or in entertainment or recreational activities.

Question 46

4.4.6 Other expenses and provision for unexpected expenditures

Accepted Answer

The calculation of Living Wage accounts for the most relevant expenditures on food, housing, transport, health and education. In order to estimate the amount of expenditures beyond these basic categories, national Living Wage campaigns typically rely on data from national household income and expenditure surveys. However, for a large set of countries, household surveys are not readily available with the regularity required for frequent updates. Because the bundle of non-food and non-housing commodities varies across countries according to habits and culture as well as over time, it is difficult to arrive at a universal basket of goods and services covering personal needs in all countries.One solution to this problem is to provide for spending on non-specified discretionary purchases such as clothing and cosmetics. In addition, it has to be ensured that the Living Wage is sustainable in allowing for unforeseen events such as illness, accidents or unemployment. Provision for unexpected events is also common in Living Wage calculations.WageIndicator follows Anker and Anker (2017) and adds a 5 percent margin to the final estimate of the cost of living. When the calculation of the costs of living is more comprehensive in covering the goods and services, a lower margin is more appropriate as that does not increase the resulting Living Wage unreasonably.

Question 47

4.4.7 Add-on - Childcare cost

Accepted Answer

From October 2024, WageIndicator began including the cost of childcare as an add-on to its Living Wage estimates. This was done to bring methodological parity with other Living Wage data providers, several of whom include this in their estimates. WageIndicator considers these components as add-ons and not a part of the basic basket of goods and services. For its basic Living Wage estimates, WageIndicator continues to use the aforementioned ten components (see Chapter 2), maintaining continuity with its methodology.The childcare cost (see Table 13 for some examples) is calculated on the basis of the following assumptions: the carer earns a Living Wage for a Typical Family to take care of six children at the same time; the childcare duration is 12 years per child and the total childcare cost that a family has to bear is spread over the total childcare years.One example of given data used could be the following:Monthly Living Wage per Earner (W): $900Children per Carer (N): 6Fertility Rate (F): 1.5Childcare Duration per Child (C): 12 yearsNumber of Earners per Family (E): 1.8Total Working Years (WY): 45 yearsThe above data is used to calculate first the total cost of childcare per family, which is calculated as follows:The result for the example above would be 32500 $.Then, the annualised childcare cost per earner is calculated with the formula below, where TCY are the total childcare years, calculated by multiplying the childcare duration per child (C) by the Fertility Rate (F):Finally, the monthly childcare cost per earner is calculated as follows:This means that the total childcare cost is distributed over the years when childcare expenses are incurred in order to provide a higher income when families need it most. In this way, families are able to cover actual costs during childcare years.Table 13. Cost of childcare as an add-on to the Living Wage. Monthly amounts in national currency for selection of countries, October 2025 release Country Currency Childcare cost typical family for a full time earner - lowest - per month Chile CLP 85760.32 Côte d’Ivoire XOF 27844.53 Czech Republic CZK 2852.70 Italy EUR 148.19 South Africa ZAR 1185.95 Vietnam VND 770098.32 Source: WageIndicator Living Wages, 2025

Question 48

4.4.7 Add-on - Private car cost

Accepted Answer

Similar to childcare, in some countries and regions, ownership of a car is considered a basic necessity. Therefore, WageIndicator considers the cost of this as an add-on to the basic Living estimate.The cost of owning a private car (see Table 14 for some examples) encompasses the initial purchase price of the car, excluding variable expenses such as fuel and insurance. To provide a more accurate representation of long-term affordability, the total cost of the car is amortised over a period of five years, reflecting the car’s depreciation and allowing for a clearer understanding of its financial impact over time.Table 14. Cost of a private car as an odd-on to the Living Wage. Monthly amounts in national currency for selection of countries, October 2025 release Country Currency Car cost typical family for a full time earner - lowest - per month Chile CLP 211303.29 Côte d’Ivoire XOF 168504.49 Czech Republic CZK 8837.51 Italy EUR 725.98 South Africa ZAR 6565.65 Vietnam VND 5734667.95 Source: WageIndicator Living Wages, October 2025

Question 49

4.5 The Living Wage / Living Income dataset

Accepted Answer

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Question 50

4.5.1 Data cleaning

Accepted Answer

As explained in Chapter 3.5, during the data collection process substantial efforts are undertaken to ensure high quality data. As a next step, scripts used for the Living Wage dataset ensure the removal of outliers.

Question 51

4.5.2 Minimum number of observations per category

Accepted Answer

To ensure the calculation of a reliable Living Wage for a country or for a region within a country, a minimum number of observations - collected over a period of time of maximum 60 months - is required. For the calculation of a Living Wage per region or per country, WageIndicator requires a minimum number of observations, namely:for food between 2,000 and 6,000 prices per region are needed; if less data is available, WageIndicator will not publish a Living Wage estimate;for housing between 50 and 200 observations are needed to calculate estimates for a country-level and 20 and 200 observations for a region-level Living Wage;for transport at least 20 observations for country-level estimates and at least 20 observations for a region-level estimates are needed;for health, education and other components, 20 observations are needed to calculate health and education, clothing/footwear, phone & data and drinking water expenses at the national and regional level. If there are not enough observations at the regional level, then the national data is used also for the region-level Living Wages, as these are smaller expenses and usually do not vary too much per region. If there are not enough observations at the national level, data from countries within the same income group (as per the World Bank country income grouping) are used, using data published by the International Labour Organisation.In WageIndicator calculations, prices collected by WageIndicator in the last twelve months are weighted with a higher weighting factor, to ensure that recently collected prices are more influential in the living wage calculation.

Question 52

4.5.3 Actual data

Accepted Answer

The new data replace the old data and the quarterly data for this reference period are of course adjusted for inflation. The data presented for the last quarter is always seen as the most accurate, so when available the most recent data is used.💡Good to know: The Living Wage calculation is based on prices collected during the last 36 months in order to avoid uncharacteristic or short-lived extraordinary fluctuations.

Question 53

4.5.4 Inflation correction

Accepted Answer

For most national figures, WageIndicator applies the CPI (Consumer Price Index) published by the International Monetary Fund (IMF) to update older prices. However, such CPI data is not available for countries like Cuba or Monaco. For countries where CPI data is unavailable, data collected only in the last 18 months is used.

Question 54

4.5.5 Gross and net Living Wages, taxes and social contributions

Accepted Answer

The Living Wage is presented as the gross monthly wage of a full-time worker. The gross Living Wage estimate is obtained by adding the mandatory payroll deductions obtained from the latest national tax summaries available publicly, based on several sources, like the Worldwide Tax Summaries published by PWC, to the net Living Wage. The income tax is required by law and therefore has to be included in the Living Wage calculation.In many countries low income levels are exempt from tax up to a minimum income threshold and tax brackets are set based on income levels Since taxes are applied to gross pay, the net Living Wage needs to be ‘grossed up’ to account for income tax. However, given that in some countries income tax rates are low but social contributions high, and given that social services may be financed by taxes, the amount of taxes includes social contributions (pension contributions, medical insurance contributions, social insurance contributions). The taxes included in WageIndicator Living Wage are the taxes due by the employee (and not by the employer). In summary, the ‘gross Living Wage’ includes the taxes and social security contributions due by the employee.In the case of the Living Income, taxes and social contributions from both the employee and the employer’s side are incorporated.

Question 55

4.5.6 Lower and upper bound data

Accepted Answer

Living Wages and Living Income are calculated as a range. The lower bound (lowest) Living Wage is calculated using prices at the 25th percentile or first quartile, while the higher bound (highest) uses the 50th percentile (or median) of all the prices collected. This interval reflects the variation of prices within a country: the 25th percentile is the value for which 75% of the respondents reported higher prices, while the 50th percentile (median) is the value for which half of the respondents reported higher and the other half lower prices.

Question 56

4.6 Living Wage / Living Income data for five countries

Accepted Answer

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Question 57

4.6.1 Family types

Accepted Answer

Living standards within and between countries vary, but all Living Wage campaigns aim to ensure a decent remuneration for work in support of workers and their families. The WageIndicator Living Wage concept is a systematic attempt to reflect the diversity in family types found worldwide. Therefore, three types of families have been defined: a standard family, a typical family and - more recently - a single-earner family. These types apply to all countries included. Image 11 shows the characteristics and Image 12 shows how the Living Wage is calculated. For the single-earner, the family composition considered is the same as the typical family, but the total amount is not divided by the number of earners per family, as it is assumed that one of the adults earns the whole amount.Although WageIndicator still calculates and shows the one-person or individual household, this is done to make the calculation more understandable, and not to be used as a benchmark.Image 11. How WageIndicator defines family typesSource: WageIndicator Foundation 2025Image 12. Summary of the calculation of the Living Wage for the two family typesNote: The calculation of Living Wages for the family types takes into account the most recent employment rates (World Bank) and family characteristics (fertility rate) (World Bank) available, in the local context. Source: WageIndicator Foundation 2025

Question 58

4.6.2 Living Wage / Living Income data for five countries

Accepted Answer

The data collected is used to calculate monthly Living Wage / Living Income estimates. As an example, Annex 11 shows the data for five countries selected from each continent, covering the year average estimates, plus the October 2024 Guidance release. The table shows the lowest and highest boundaries for the Living Wages and details the monthly costs for the item categories.

Question 59

4.6.3 Living Tariff data for five countries

Accepted Answer

The Living Tariff is based on the concept of Living Wages and its adjustment to the specificities of the self-employed in the gig economy. The argument why we need a Living Tariff besides a Living Wage, and the methodology for collecting data for the Living Tariff has been presented since November 2023 at least in 10 conferences, Living Wage info sessions and company presentations. See annexCurrently data for the Living Tariff are being collected in 5 countries (see Table 15).Table 15. The Living Tariff estimates for five countries. Country - capital region Currency Living Tariff -typical family - 2+national fertility rate - national labour participation rate - lowest - per hour (basic, no work-related equipment or overhead) Living Tariff -typical family - 2+national fertility rate - national labour participation rate - lowest - per hour (including work-related equipment or overhead for a motorcycle deliverer) India - Delhi INR 117.78 221.91 Indonesia - DKI Jakarta IDR 38,173.53 63,444.96 Kenya - Nairobi KES 326.07 551.76 Netherlands - North Holland EUR 23.55 30.28 Pakistan - Islamabad Capital Territory PKR 372.55 606.87 Source: WageIndicator Living Tariff Tool, 2025

Question 60

5. Living Wage and adjacent benchmarks

Accepted Answer

WageIndicator presents its Living Wage information in the context of political, civil, and labour rights. Per country, WageIndicator contextualises its data with respect to seven adjacent benchmarks, namely:Poverty linesStatutory minimum wageActual wagesWorking hours per weekTaxesLabour rightsWageIndicator has its own data collection on Minimum Wages, Actual wages, Labour Laws, weekly working hours, and taxes, stemming from desk research on government sources, international, and multilateral institutions and research institutes. The poverty line is based on external sources. This chapter discusses these five context benchmarks.

Question 61

5.1 The Poverty Line

Accepted Answer

The World Bank defines a poor individual as a person who lives on less than US$2.15 (PPP) per day. PPP stands for Purchasing Power Parity, a specific form of price indexation that is widely used for international comparison of real incomes. PPP rates are calculated based on the price surveys undertaken by the International Comparison Program (ICP) organised by the World Bank. Using these PPP rates, the World Bank Poverty Line is calculated as the monthly (i.e. 30 days) income assuming the spending of PPP-adjusted US$3.00 per person per day by May 2024.Some countries define their own poverty lines. The national poverty line is the minimum income level on which an individual is supposed to be able to survive. These national poverty lines are set by governments. National definitions of poverty and their practical implementation vary widely across countries. In some countries the national poverty line is calculated based on actual prices and revised regularly. In other countries the figure attached to the poverty line is only irregularly updated.The poverty line is usually set for an individual. Only a few countries define a poverty level for a family. Richer countries deploy more generous living standards to define poverty than poorer countries. Some countries do not define a national poverty line at all. Therefore, national indications of poverty lines are not directly comparable across countries. To assess whether a national poverty line indicates an adequate income, WageIndicator compares it with a Living Wage based on real prices of goods collected through the WageIndicator Cost-of-Living survey.

Question 62

5.2 The Minimum Wages

Accepted Answer

Minimum Wages are important when contextualising WageIndicator’s Living Wage estimates because many countries take the standpoint that the minimum wage should be sufficient for a decent income. However, for many countries the Minimum Wage and WageIndicator’s Living Wage reveal large disparities as shown below in Image 13. These disparities are related to the country’s GDP.💡Good to know: In 2025, in 23 countries the Minimum Wage equaled or exceeded the Living Wage Typical Family Lowerbound, and in 145 countries Minimum Wages were lower (or there was no Minimum Wage). Among high income countries, the Minimum Wage is on average 118% of the Living Wage in OECD countries and 72% in non-OECD countries, while in low income countries the Minimum Wage covers on average only 12% of the Living Wage.Image 13. Percentage of the Living Wage covered by the Minimum Wage by country income groupSource: WageIndicator Living Wage and Minimum Wage database. Release: Living Wage Guidance 2025WageIndicator has its own Minimum Wages data collection. The Minimum Wages database was introduced in 2006 as a response to the questions by workers and their trade unions in Paraguay and by web visitors of the WageIndicator website in The Netherlands and India. Minimum Wages in The Netherlands were at that time more complex. Special rates for youth, and extra holiday allowances, and differences for those who work 36 or 40 hours a week. Minimum wage rates in India are defined per state, are very complex, are not easily available online, and in some states the official Notifications are published in the regional language only. For this reason, many workers did not know their Minimum Wage and asked WageIndicator to provide this information online. Soon other national WageIndicator web sites followed with Minimum Wage pages. The technical performance of the database was gradually improved and included information for an increasing number of countries. The Minimum Wage database with monthly rates was created in 2014 and is now updated monthly. In October 2025, the database contained information for 218 countries and territories and over 25,000 rates.The statutory or legal Minimum Wages are set and published by governments, sometimes after consultation with social partners. Many countries have one Minimum Wage and in most cases it applies to the entire workforce. Other countries apply multiple Minimum Wages for categories of workers defined by industry, firm size, occupational group, skill level, educational level, geographical characteristics, age, or years of service. Approximately half of the countries in the Minimum Wage database have multiple rates. For the contextualisation of WageIndicator’s Living Wage, one reference point per country or per region is needed. For countries and regions with multiple rates, the lowest rate is defined as follows:if a country defines one rate as the general Minimum Wage rate or defines a rate for general workers, this rate is selected, except for South Africa, where several rates are lower than the 'general' one. In this country the lowest rate is shown;if a country has specific rates for youth, apprentices, workers with no experience, handicapped workers, piece rate workers, or tipped workers: these rates are excluded from the lowest rate reference;if a country defines different Minimum Wages between rural and urban areas, different industries or between unskilled and skilled workers, the lowest rate is shown;However, where possible - as in all WageIndicator national websites - WageIndicator shows the most detailed Minimum Wages per country, region, and sector. Government announcements about Minimum Wages are traced and supplemented by a global WageIndicator network, contacts with governments and a vast network of professional users guarantee an up to date database.💡Good to know: As of October 2024, 26 countries have a monthly Nationally Applicable Minimum Wage higher than the monthly 2024 Living Wage Guidance Typical Family Lowerbound. These countries are: Andorra, Australia, Austria, Belgium, Canada, Cyprus, Estonia, France, Germany, Iran, Ireland, Japan, Lithuania, Luxembourg, Mauritania, Netherlands, New Zealand, Poland, Puerto Rico, Saudi Arabia, Slovenia, South Korea, Spain, Switzerland, Taiwan and United Kingdom. Note: for some regions within these countries the Minimum Wages may be lower than the Living Wage.From July 2024 onwards, WageIndicator introduced a GPS-coded system to supplement its Minimum Wage database. The result is that, if companies provide precise addresses or GPS codes of their locations, WageIndicator can easily map them to the Minimum Wage that applies to those specific locations. Next to GPS codes, WageIndicator also uses NACE codes for industries and ISCO codes for occupations to retrieve the applicable Minimum Wages for a company.

Question 63

5.3 Occupational Wages

Accepted Answer

Since its start in 2000, WageIndicator has collected data about occupational wages. This began with data for the Netherlands only, then expanded to other countries. This data collection continues today and is based on data collected through the WageIndicator Salary Survey and Salary Check posted on its websites with recruitment through social media, Decent Work Surveys, face-to-face surveys in selected countries, and external sources from national statistical offices. Using ILO's International Standard Classifications of Occupations (ISCO-08), the occupations can be classified as high-skilled, medium-skilled and low-skilled. For each country the Living Wage thresholds can be compared to the occupational wages by skill level.

Question 64

5.4 Regular working hours per week

Accepted Answer

For most countries the legal working hours refer to the maximum hours per week. The WageIndicator normal working hours refer to the working hours which are normal, standard or regular in the country, as is agreed in Collective Bargaining Agreements or Minimum Wage regulations. These regulations can mention normal working hours versus overtime hours. WageIndicator also registers the number of regulatory leave days per year. The labour law database is based on desk research, in cooperation with the WageIndicator office Centre for Labour Research in Islamabad and WageIndicator teams worldwide. The WageIndicator working hours database and its Labour Law database are updated yearly (Tijdens, 2023). WageIndicator uses the normal working hours to calculate a monthly Living wage / Income.💡Good to know: For 220 countries WageIndicator maintains a database with information about the standard or normal working hours per week.

FAQ - Living Wage