The methodology developed for Brazil is the ARI approach to Sub-National estimates and will be used in other countries, to estimate living income and living wages, albeit slightly adjustments might be necessary. Some countries have different data availability and the extent of regional diversity are taken into consideration when determining sub-national living wage and living income estimates. Nonetheless, the methodological approach provides the main guidelines on how sub-national living wages and living incomes can be estimated in a way that maintains consistency and comparability with other Anker Methodology estimates.

The required steps include:

(i) starting with reliable available national household data usually collected by the national statistical office and/or credible institutions, such as the World Bank and International Labor Organization;

(ii) determining the highest level of geographic disaggregation the national data allows for statistical representativeness;

(iii) determining an appropriate reference family size and number of full-time equivalent workers per family;

(iv) developing a low-cost and palatable nutritious model diet and a minimum acceptable healthy housing standard based on local and international standards;

(v) estimating food costs and housing costs using regional data on food prices and housing costs;

(vi) using credible and robust criteria to define a reference population to estimate decent non-food non-housing costs;

(vii) estimating the total living cost for each region at the highest level of disaggregation by summing the cost for a palatable low-cost nutritious model diet, basic healthy housing, non-food non-housing needs for non-poor households, and something extra for emergencies and sustainability;

(viii) get net and gross living wage values by dividing the living income by the number of full time equivalent workers and then adding payroll deductions and income tax.