A Living Wage for Households: Analysis of Urban Households in Kota Kinabalu, Sabah

Abstract

As Malaysia steps closer to become a high-income nation, it is time for all citizens to aspire to at least a minimum acceptable standard of living. The rising cost of living poses difficulties for households to maintain an adequate standard of living. This study aims to investigate the living wage of household in Kota Kinabalu. In this context, a household refers to an individual or a group of individuals, whether related or not, who live together in the same house and make economic decisions together. The living wage calculation in this study applied the Anker Formula. For data collection, this study employs a quantitative approach strategy in which self-developed questionnaires are distributed to respondents around Kota Kinabalu. The study results indicates that the total living wage needed for the household with different number of full-time workers is slightly different. Overall, the living wage needed for a worker living in Kota Kinabalu area are RM 2541.36 per month to be able to afford a minimum satisfactory living standard. Previous literature shows that housing cost, food cost, transportation cost, communication cost, healthcare cost, education cost, household size, number of full-time workers and savings are the factors that significantly influenced the living wage. On this basis, the authorities should emphasize more on these factors when setting the minimum wage policy particularly in the urban area such as Kota Kinabalu, Sabah.