{"id":446264,"date":"2018-12-21T09:03:08","date_gmt":"2018-12-21T09:03:08","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=446264"},"modified":"2018-12-21T09:14:59","modified_gmt":"2018-12-21T09:14:59","slug":"study-results-moldovan-salaries-cover-not-even-half-costs-decent-life","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/study-results-moldovan-salaries-cover-not-even-half-costs-decent-life\/","title":{"rendered":"Study results: Moldovan salaries cover not even a half of the costs needed for a decent life"},"content":{"rendered":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

The Friedrich-Ebert-Stiftung Moldova Foundation, in partnership with the Clean Clothes Campaign and Platzforma have issued the results of the case study performed by them in the textile industry. The study titled \u201cLiving wages in the Republic of Moldova. Case study: textile industry\u201d presented the concept of living wage by calculating how much money a worker in the textile industry and his family needs for a decent living.<\/p>\n

The results of the case study are especially valuable for 3 main reasons: it is the first such kind of study in the Republic of Moldova. It includes a new term for the Moldovan society – the living wage, taken into consideration that the Moldovan government operates only with the terms of minimum and average wage in all national statistics. The conclusions of the study are applicable for any employee of any other sector of the economy, displaying a more realistic situation regarding the incomes and expenses of an average Moldovan citizen.<\/p>\n

What is the difference between the minimum wage and the living wage?<\/h3>\n

According to Lilia Nenescu, an anthropologist and the co-author of the study, the living salary has never yet been calculated in Moldova. \u201cCurrently, we operate with other concepts such as minimum wage, average salary or the poverty threshold. Beside the fact that the living wage calculates the cost of living, this is also a guaranteed right by the Universal Declaration of Human Rights and the Constitution of our country, which states that citizens have the right to a decent living. The minimum calculated wage in the Republic of Moldova does not cover the expenses of a decent living,\u201d reported Nenescu.<\/p>\n

In comparison to the minimum wage that is set by the government and means the lowest wage an employer may legally pay its workers, the living wage is the amount of money calculated as being sufficient for an employee and his family to cover basic costs of living, being adjusted to the location, household size and to the inflation rate. Another important difference between these two concepts is that the minimum wage is always displayed as a gross amount, while the living wage – as a net amount, including a saving of 10% for unexpected expenses. Moreover, the living wage can be only in the monetary form, without any vouchers or goods as payment. \u201cIf the worker doesn\u2019t receive his salary in the monetary form, he is not free to choose on what to spend it,\u201d specified Lilia Nenescu.<\/p>\n

\"\"

Photo source: adevarul.ro<\/p><\/div>\n

How was the living wage calculated?<\/h3>\n

For one month, the experts collected data on food prices from 10 workers from a village and 10 more workers from a city, in order to track the price fluctuations. Afterwards, they have developed a nutritious food basket of 3,000 calories, adapted to the local specificities, without including tobacco, alcohol or processed foods. \u201cThe participants noted down the price for each product as they paid. After collecting the data, we calculated the average price of the products. Based on these figures, the costs of a nutritional diet for a day were calculated. Subsequently, the food expenses for 30 days, for a family of 3 members were determined,\u201d as the authors of the study explained. The same method was applied for the non-food expenses. By adding them up to the food expenses, the total amount of the living wage was obtained.<\/p>\n

What is the conclusion of the study?<\/h3>\n

As the study results showed, there are seven basic categories of needs considered for the living wage: food, housing (rent, maintenance bills), health, education, culture, clothing and transport. <\/strong>The ratio between the food and non-food expenditure (clothing, maintenance bills, transport, etc.) is 43.9% to 56.1%. The living wage estimated by the authors of the study amounts to at least 12306.8 lei for urban zones and 11359.6 lei for the rural ones. \u201cThe minimum living wage in the textile industry in the Republic of Moldova should be at least 11833.2 lei<\/strong>,\u201d deduced the study authors.<\/p>\n

Therefore, the average gross salary in the textile industry in the Republic of Moldova in the third quarter of 2018 was 6 027 lei, whereas in the footwear industry it reached only 5242.8 lei, according to the National Statistical Bureau<\/a> (NBS). That means a net average salary of 4776.86 and 4159.22 respectively for a person that has one child. It covers less than half of the minimum living wage calculated in the conducted study.<\/p>\n

Moreover, the average living costs per person displayed<\/a> on the NSB of Moldova correspond to an amount of 2437.5 lei for the third quarter of 2018. A closer analysis of the respective amount reveals that such expenses as rent are not included in the amount, therefore people in the Republic of Moldova are supposed to pay only for the maintenance and furnishing of their house, which represent a share of 22.8% of the total amount. Even more unrealistic seem the calculated costs for studies \u2013 0.4% of the total amount, this cost being even lower than the cost of agreement \u2013 1.7%. Thus, it becomes clear that the calculation of the minimum legal wage and of the estimation of living costs in the Republic of Moldova are subject to underestimation and don\u2019t correspond to the real existing situation in the country.<\/p>\n

Why is the living wage so important?<\/h3>\n

\u201cWe have studied the textile industry precisely because we are already part of an effort to improve working conditions in this area. Living wages are also an advocacy tool that we want to include in our efforts of raising the wages in this sector. It is necessary to measure living wages so that we can present these figures to the brands and show them what the real expenses of workers from countries like Moldova are,\u201d mentioned the activist Vitalie Spr\u00e2ncean\u0103, one of the authors of the study.<\/p>\n

\"\"<\/p>\n

There is no official methodology in the Republic of Moldova of calculating a salary level that reflects real spending of a person or a family for a normal and decent life. The lack of a decent living salary means that many workers in different sectors of the economy are forced to work additionally for extra gain or to combine more jobs, as the Platzforma description<\/a> of the project stated. Because Moldovans do not have enough money, they have a poorer menu, wear the same clothes for years and forget about vacation. \u201cThe priorities are the children’s education and the maintenance bills, all that remains is for food and lastly for clothes,\u201d answered a pedestrian interviewed<\/a> by TV8.<\/p>\n

\u201cLiving salary is a new concept for the Republic of Moldova, where the minimum wage or average salary concepts are used. From the study, however, we understand that these notions do not even cover the costs of a decent living. This concept of living wage fits well into our mission and we will continue to promote it,\u201d says Veaceslav Paladi, the Programs\u2019 Coordinator at the Friedrich-Ebert-Stiftung Foundation in Moldova.<\/p>\n

Featured photo: sputnik.md<\/p>\n

<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>The Friedrich-Ebert-Stiftung Moldova Foundation, in partnership with the Clean Clothes Campaign and Platzforma have issued the results of the case study performed by them in the textile industry. The study titled \u201cLiving wages in the Republic of Moldova. Case study: textile industry\u201d presented the concept of living wage by calculating how much money a worker […]<\/p>\n","protected":false},"author":31,"featured_media":446269,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,4],"tags":[120,35,119,118,27,121,104],"class_list":["post-446264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-society","tag-expense","tag-important","tag-living-wage","tag-minimum-wage","tag-moldova","tag-salaries","tag-statistics"],"content_social_share":"Reading Time: <\/span> 5<\/span> minutes<\/span><\/span>

The Friedrich-Ebert-Stiftung Moldova Foundation, in partnership with the Clean Clothes Campaign and Platzforma have issued the results of the case study performed by them in the textile industry. The study titled \u201cLiving wages in the Republic of Moldova. Case study: textile industry\u201d presented the concept of living wage by calculating how much money a worker in the textile industry and his family needs for a decent living.<\/p>\n

The results of the case study are especially valuable for 3 main reasons: it is the first such kind of study in the Republic of Moldova. It includes a new term for the Moldovan society – the living wage, taken into consideration that the Moldovan government operates only with the terms of minimum and average wage in all national statistics. The conclusions of the study are applicable for any employee of any other sector of the economy, displaying a more realistic situation regarding the incomes and expenses of an average Moldovan citizen.<\/p>\n

What is the difference between the minimum wage and the living wage?<\/h3>\n

According to Lilia Nenescu, an anthropologist and the co-author of the study, the living salary has never yet been calculated in Moldova. \u201cCurrently, we operate with other concepts such as minimum wage, average salary or the poverty threshold. Beside the fact that the living wage calculates the cost of living, this is also a guaranteed right by the Universal Declaration of Human Rights and the Constitution of our country, which states that citizens have the right to a decent living. The minimum calculated wage in the Republic of Moldova does not cover the expenses of a decent living,\u201d reported Nenescu.<\/p>\n

In comparison to the minimum wage that is set by the government and means the lowest wage an employer may legally pay its workers, the living wage is the amount of money calculated as being sufficient for an employee and his family to cover basic costs of living, being adjusted to the location, household size and to the inflation rate. Another important difference between these two concepts is that the minimum wage is always displayed as a gross amount, while the living wage – as a net amount, including a saving of 10% for unexpected expenses. Moreover, the living wage can be only in the monetary form, without any vouchers or goods as payment. \u201cIf the worker doesn\u2019t receive his salary in the monetary form, he is not free to choose on what to spend it,\u201d specified Lilia Nenescu.<\/p>\n

\"\"

Photo source: adevarul.ro<\/p><\/div>\n

How was the living wage calculated?<\/h3>\n

For one month, the experts collected data on food prices from 10 workers from a village and 10 more workers from a city, in order to track the price fluctuations. Afterwards, they have developed a nutritious food basket of 3,000 calories, adapted to the local specificities, without including tobacco, alcohol or processed foods. \u201cThe participants noted down the price for each product as they paid. After collecting the data, we calculated the average price of the products. Based on these figures, the costs of a nutritional diet for a day were calculated. Subsequently, the food expenses for 30 days, for a family of 3 members were determined,\u201d as the authors of the study explained. The same method was applied for the non-food expenses. By adding them up to the food expenses, the total amount of the living wage was obtained.<\/p>\n

What is the conclusion of the study?<\/h3>\n

As the study results showed, there are seven basic categories of needs considered for the living wage: food, housing (rent, maintenance bills), health, education, culture, clothing and transport. <\/strong>The ratio between the food and non-food expenditure (clothing, maintenance bills, transport, etc.) is 43.9% to 56.1%. The living wage estimated by the authors of the study amounts to at least 12306.8 lei for urban zones and 11359.6 lei for the rural ones. \u201cThe minimum living wage in the textile industry in the Republic of Moldova should be at least 11833.2 lei<\/strong>,\u201d deduced the study authors.<\/p>\n

Therefore, the average gross salary in the textile industry in the Republic of Moldova in the third quarter of 2018 was 6 027 lei, whereas in the footwear industry it reached only 5242.8 lei, according to the National Statistical Bureau<\/a> (NBS). That means a net average salary of 4776.86 and 4159.22 respectively for a person that has one child. It covers less than half of the minimum living wage calculated in the conducted study.<\/p>\n

Moreover, the average living costs per person displayed<\/a> on the NSB of Moldova correspond to an amount of 2437.5 lei for the third quarter of 2018. A closer analysis of the respective amount reveals that such expenses as rent are not included in the amount, therefore people in the Republic of Moldova are supposed to pay only for the maintenance and furnishing of their house, which represent a share of 22.8% of the total amount. Even more unrealistic seem the calculated costs for studies \u2013 0.4% of the total amount, this cost being even lower than the cost of agreement \u2013 1.7%. Thus, it becomes clear that the calculation of the minimum legal wage and of the estimation of living costs in the Republic of Moldova are subject to underestimation and don\u2019t correspond to the real existing situation in the country.<\/p>\n

Why is the living wage so important?<\/h3>\n

\u201cWe have studied the textile industry precisely because we are already part of an effort to improve working conditions in this area. Living wages are also an advocacy tool that we want to include in our efforts of raising the wages in this sector. It is necessary to measure living wages so that we can present these figures to the brands and show them what the real expenses of workers from countries like Moldova are,\u201d mentioned the activist Vitalie Spr\u00e2ncean\u0103, one of the authors of the study.<\/p>\n

\"\"<\/p>\n

There is no official methodology in the Republic of Moldova of calculating a salary level that reflects real spending of a person or a family for a normal and decent life. The lack of a decent living salary means that many workers in different sectors of the economy are forced to work additionally for extra gain or to combine more jobs, as the Platzforma description<\/a> of the project stated. Because Moldovans do not have enough money, they have a poorer menu, wear the same clothes for years and forget about vacation. \u201cThe priorities are the children’s education and the maintenance bills, all that remains is for food and lastly for clothes,\u201d answered a pedestrian interviewed<\/a> by TV8.<\/p>\n

\u201cLiving salary is a new concept for the Republic of Moldova, where the minimum wage or average salary concepts are used. From the study, however, we understand that these notions do not even cover the costs of a decent living. This concept of living wage fits well into our mission and we will continue to promote it,\u201d says Veaceslav Paladi, the Programs\u2019 Coordinator at the Friedrich-Ebert-Stiftung Foundation in Moldova.<\/p>\n

Featured photo: sputnik.md<\/p>\n

<\/a><\/p>\n

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