Asia Floor Wage 2024 = 1750.54 PPP$ per month

For Asian countries where Consumption Survey was done

Country PPP Exchange Rate (2023) Living Wage in Local Currency for 1750.54 PPP$
Bangladesh 30.75 BDT 53,828.97
Cambodia 1509.12 KHR 2,641,890.86
India 19.5 INR 34,170.46
Indonesia 5143.4 IDR 9,003,687.42
Myanmar 499.7 MMK 874,742.65
Philipines 20.7 PHP 36,218.58
Sri Lanka 90.5 LKR 158,353.45
Vietnam 7114.3 VND 12,453,835.59

For Asian countries where Consumption Survey was not done

Country PPP Exchange Rate (2023) Living Wage in Local Currency for 1750.54 PPP$
China 3.65 CNY 6,389
Thailand 11.18 THB 19,571
Pakistan 59.28 PKR 103,772

 

Read more about how the living wages was calculated [Download PDF]

Calculating a Living Wage – Survey Methodology Overview

The 2024 Consumption Survey spanned eight Asian countries—Bangladesh, Cambodia, India, Indonesia, Myanmar, Philippines, Sri Lanka, and Vietnam—over a four-month period from December 2023 to February 2024. This comprehensive study engaged garment worker unions at every stage, from developing the survey questionnaire to reviewing findings and determining the final wage figures.

AFWA’s methodology is based on family consumption units, a concept that accommodates varying family compositions:

  • One family = 3 consumption units: 
    • 2 adults = 1 unit each + 2 children = 0.5 units each
    • Or 1 adult (1 unit) + 4 children (0.5 units each)
    • Or 3 adults (1 unit each) 

The calculation is anchored in two key parameters: 

  1. Food Costs (45%): Food expenditures are benchmarked against an average daily caloric requirement of 3,000 calories per adult, ensuring basic nutritional needs.
  2. Non-Food Costs (55%): This includes housing, healthcare, education, transportation, and other essentials. 

Purchasing Power Parity (PPP) is used to standardize the living wage across regions. PPP adjusts wage calculations to reflect the relative costs of goods and services in each country. By following this structured approach, AFWA captures the diverse needs of workers and their families across countries. 

Steps to Calculating a Living Wage:

Step 1 : Understanding Food Costs

  • Caloric Needs: The process began by determining the actual caloric intake per person in a family. Using the benchmark of 3,000 calories per day per adult, food consumption for a family comprising three consumption units was calculated. This forms the basis for food costs, which make up 45% of wage expenditure. 
  • Food Cost Calculation: This caloric requirement was then multiplied by the expenditure per calorie, which was derived from actual food costs in the country.

Step 2 : Non-Food Costs

  • The ratio of food to non-food expenses for the family was estimated. This ratio reflected typical household spending patterns in the region. 
  • Non-food costs include housing, healthcare, transportation, education, clothing, and other basic needs. The ratio of food to non-food expenses is used to estimate these costs, with 55% allocated to non-food needs.

Step 3: Total Family Expenditures

  • The estimated food and non-food expenses were combined to determine the total monthly living expenses for a family comprising three consumption units. 
  • These expenses were then adjusted for local variations using the PPP conversion factor provided by the World Bank, ensuring the wage reflected regional costs.

Step 4: Regional and Country-Level Living Wage 

  • Regional Calculation: Living wage estimates across all countries were averaged to calculate the regional living wage in PPP$. 
  • Country-Level Adjustments: The regional PPP$ living wage was converted into local currencies using each country’s PPP conversion factor, resulting in localized wage figures.