Living Wage

A living wage is a wage that is high enough to maintain a normal standard of living. It is typically calculated based on the cost of living in a specific area, taking into account expenses such as housing, food, healthcare, and transportation.

For example, in the United States, the living wage varies by state and city. In San Francisco, the living wage for a single adult is estimated to be around $18 per hour, whereas in a smaller city like Des Moines, Iowa, it may be closer to $14 per hour.

In cases where employers pay below the living wage, workers may struggle to meet their basic needs. For instance, a fast-food worker earning the minimum wage of $7.25 per hour may find it difficult to afford housing and healthcare, leading to financial instability.

Conversely, some companies that adopt a living wage policy report increased employee morale and productivity. For example, in 2015, the city of Seattle implemented a gradual increase to a $15 per hour minimum wage, which aimed to provide a living wage for workers in the area.