Living Wage Series - Madagascar - December 2018 - In Malagasy Ariary, per Month

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You are looking at an archive page of WageIndicator Living Wages. This data is not comparable with recent data provided by WageIndicator. This is due to revised data cleaning procedures adopted by WageIndicator and the impact of the Covid-19 pandemic on the cost of living globally. Moreover, the national data shown does not reflect the regional data that is used for Living Wage implementation.

Interested to implement WageIndicator's Living Wages in your organisation's compensation and benefits, using data that is updated every quarter? Learn about the database options and rates and the countries and regions covered. For academic use, data on Living Wages and the cost of living can be acquired for free.

The Living Wage is based on the concept that work should provide an adequate income to cover the necessary living costs of a family. WageIndicator uses prices from the Cost of Living Survey to calculate Living Wage in more than 60 countries. The Living Wage is an approximate income needed to meet a family’s basic needs including food, housing, transport, health, education, tax deductions and other necessities.

The following table summarises the varying expenditure and income needs for the three commonly occurring family household compositions.

Expenditure and Living Wage calculation (monthly rates in Malagasy Ariary)

  Typical family Standard family Single-adult
  from-to from-to from-to
Food 356800-458400 219600-282100 54900-70500
Housing 300000-400000 300000-400000 132100-182100
Transport 40000-56000 40000-56000 20000-28000
Health 50000-90000 50000-90000 12500-22500
Education 50000-100000 50000-100000 0
Other costs 39800-55200 33000-46400 11000-15200
Total Expenditure 836600-1159600 692600-974500 230500-318300
Net Living Wage 440316-610316 384778-541389 230500-318300
Gross Living Wage 484400-671400 423300-595500 253600-350100

Note: For more details see Living Wage FAQ.


Family Living Wages (monthly rates in Malagasy Ariary)

There is not a single answer to what is the adequate cost of living. The result is complex, as the cost of living varies by household composition, location, and employment pattern. The following table presents the Living Wage estimates for a set of most common family household compositions and under different assumptions about working hours.

Typical family (two parents + 4.5 children, 1.9 working) 484400-671400
Standard family (two parents + 2 children, 1.8 working) 423300-595500
Two parents and two children, 2 working 380900-536000
Two parents and two children, 1.5 working 507900-714600
Two parents and two children, 1 working 761900-1072000
Two parents and three children, 1.9 working 434300-607000
Two parents and four children, 1.9 working 467700-650000
Single-adult without children, 1 working 253600-350100

Note: Results in the table are rounded.


Living Wages in Context (monthly rates in Malagasy Ariary)

The Minimum Wage is a national legally binding obligation on employers which often make no reference to a living standard. Living Wage describes the adequate living standard. The common goal of the many living wage campaigns currently taking place all over the world is to lift Minimum Wages levels to those of the Living Wages. WageIndicator presents Living Wages jointly with Minimum Wages, aiming to raise awareness concerning the remaining differences in levels. Living Wages are presented in context with other wage indicators including prevailing wages of workers over recent years.

  2015 2016 2017 2018
Minimum wage 133013 144003 155523 155523
Living Wage - Single Adult - - - 253600-350100
Living Wage - Typical Family - - - 484400-671400
Real wage of low-skilled worker 203300-309800 209300-306000 233600-337100 231400-364000
Real wage of medium-skilled worker 303300-453200 335000-466000 335600-473300 357000-548200
Real wage of high-skilled worker 479700-765900 539400-803200 550300-834900 580600-951800

Note: Table shows the lowest monthly Minimum Wage in a country, when available. Reported monthly earnings of workers in low-, medium-, and high-skilled occupations are obtained from the voluntary WageIndicator web survey on work and wages. Results in the table are rounded.

Madagascar Graph

Food basket and food prices in Malagasy Ariary

The food expenditure is the main component of Living Wage and it is determined by the price of food basket. The food prices are taken from WageIndicator Cost of Living Survey which collects the actual prices of all items necessary to calculate the Living Wage. The composition of the food basket is taken from the national food balance sheets published by the UN Food and Agriculture Organization (FAO). The food basket is scaled to 2,100 calories per person per day that is the nutritional requirement for good health proposed by World Bank (Handbook on poverty and inequality, 2009).

Food item Grams per day Energy (kcal) Price per kilo
Wheat, barley and cereals products 26 72 1000-2000
Rice 293 1085 1400-1500
Meat (beef, pork, poultry) 46 89 8000-10000
Oils (soyabean, olive, palm) 6 56 5000-5200
Sugar (Raw Equivalent) 33 73 2400-2800
Maize and products 51 152 1200-2000
Milk - Excluding Butter 71 45 2000-2400
Vegetables, Other 43 10 1000-1500
Potatoes and products 16 11 1000-1400
Butter, Ghee 1 9 12000-16000
Groundnuts (Shelled Eq) 5 8 2000-4000
Pulses, Other and products 1 4 2300-3000
Cassava and products 354 316 600-1000
Egg (price per 10 eggs) 2 3 3500-4000
Sunflowerseed Oil 0 2 5200-6000
Fish products 13 9 8000-10000
Beer (0.5 liter/pint) 14 6 4000-4400
Sweeteners, Other 1 1 2500-3000
Beans 9 29 2400-2900
Sweet potatoes 62 59 800-1000
Bananas 40 24 1000-1200
Soyabeans 0 0 3000-4000
Apples and products 1 0 2000-3000
Tomatoes and products 4 1 1500-2000
Onions 1 0 2000-2500
Oranges, Mandarines 11 3 2500-3000
Peas 2 6 2500-3000
Roots, Other 15 14 1500-2000
Seeds and kernels 0 0 9000-10000
Wine (bottle) 1 1 13300-16000
Pineapples and products 9 3 -
Cream 0 0 6000-12000
Olives (including preserved) 0 0 15000-15000
Honey 1 2 12000-12000
Citrus, Other 0 0 2500-3000
Lemons, Limes and products 1 0 2000-3000
Tea (including mate) 0 0 5600-6000
Grapefruit and products 1 0 1500-3000
Coffee and products 6 3 5000-8500


WageIndicator Living Wage background:

The WageIndicator Living Wage is set to provide acceptable living standard to a family of a particular size. WageIndicator presents Living Wages for several household types and working hours which reflect the most frequently found real situations in which people have to make a living: 1. Typical family Living Wage is a baseline estimate that respects the country specific conditions. Typical family is comprised of two adults and the number of children is given by country specific fertility rate (the average number of children a woman is expected to have during her lifespan). One adult is working full-time and the working hours of second adult are approximated by national employment rate. The total income earned by two adults paid living wage is sufficient to reach adequate living standard. 2. Standard family Living Wage is estimated for a family composed of two adults and two children (referred to as family 2+2). Living wage is calculated under different assumptions about working hours. These include that both adults work full-time (family employment rate is 2), or at least one adult works part-time or half-time (family employment rate is 1.8 and 1.5), or one adult does not work at all (i.e. patriarchal model with family employment 1). Alternatives refer to trade-offs between leisure and work and define what living wage represents. In every case the total income earned by two adults paid living wage is sufficient to reach adequate living standard. 3. Extended family Living Wage includes family with three or four children. One adult works full-time and the work intensity of second parent is approximated by national employment rate. 4. Individual Living Wage represents an acceptable standard of living for a single individual working full-time.

Data sources: WageIndicator Cost of Living Survey, World Bank Databank Fertility rate 2010-2014, ILO Estimated participation rate in 2017, FAO Food balance sheet in 2013.

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