Definition: A living wage is a wage that is high enough to maintain a decent standard of living (adequate food, shelter, and other necessities). With a living wage, a worker should be able to support himself and his family without resorting to welfare or other public assistance. Living wage varies based on the area-specific cost of living.
Living wage is different from minimum wage. Unlike living wage, minimum wage is set by law, and is sometimes even lower than the living wage for a specific area.
In response to this, some cities have created a living wage ordinance – a law that requires employers to pay wages that are at or above the region’s calculated living wage.
Read More: Minimum Wage | Wage and Salary Q & A | Employment Glossary
Also Known As: minimum wage, minimum wage requirements
