The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living database that is the biggest data source for cost of living worldwide. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, mandatory deductions and other necessities.
The following table details the expenditure and income needs for the three commonly occurring family household compositions.
Expenditure and Living Wage calculation (monthly rates in GHS)
Typical family | Standard family | Single-adult | |
from-to | from-to | from-to | |
Family size | 6.0 | 4 | 1 |
Food expenses | 982-1381 | 655-920 | 164-230 |
Housing expenses | 3710-5820 | 3710-5820 | 3710-4750 |
Transport expenses | 730-1003 | 730-1003 | 365-502 |
Healthcare expenses | 40-52 | 27-35 | 7-9 |
Education expenses | 40-58 | 20-29 | 0 |
Drinking water expenses | 85-90 | 57-60 | 14-15 |
Clothing expenses | 56-60 | 37-40 | 9-10 |
Phone tariff (60 minutes) | 13-30 | 13-30 | 7-15 |
5% extra expenses | 283-425 | 262-397 | 214-277 |
Total cost of living | 5939-8919 | 5511-8334 | 4490-5808 |
Earners per family | 1.8 | 1.8 | 1 |
Net Living Wage | 3337-5011 | 3062-4630 | 4490-5808 |
Mandatory payroll deductions | 834-971 | 757-950 | 942-1015 |
Gross Living Wage | 4170-5980 | 3820-5580 | 5430-6820 |
Note: For more details see Living Wage FAQ.
Living Wages in Context (monthly rates in GHS)
The statutory Minimum Wages are laid down in laws or government regulations and therefore constitutes both a worker's rights and an employer's obligation. By contrast Living Wages are not prescribed by law and can therefore not be legally enforced. Instead, Living Wages provide a benchmark for employers who voluntarily commit to pay wages according to the local living standards.
WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators. Prevailing wages of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages.
2020 | |
Minimum wage | 319.1 |
Living Wage - Single Adult | 5430-6820 |
Living Wage - Typical Family | 4170-5980 |
Real wage of low-skilled worker | 600-835 |
Real wage of medium-skilled worker | 650-1050 |
Real wage of high-skilled worker | 1220-1990 |
Note: Table shows the lowest monthly Minimum Wage in a country, when available. Figures in the table are rounded.
WageIndicator useful links:
WageIndicator Wages in Context Map with the latest updates
All You Always wanted to Know about Living Wages