What is the difference between a minimum wage and a living wage?

Minimum wage and living wage are two different terms that refer to the amount employers must pay employees for their labor. In North Dakota, the current minimum wage is $7.25 per hour, with higher wages required for some occupations. A minimum wage is the lowest amount that an employer can legally pay employees for work performed. This is established by federal, state, or local law and is not intended to provide a living wage for a full-time, year-round worker. A living wage, on the other hand, is the amount of money needed to cover basic living expenses for a family or individual. Living expenses include food, housing, healthcare, transportation, utilities, and other necessities. Living wages vary by location and are higher than the minimum wage. In North Dakota, the cost of living is higher than the federal minimum wage, so some employers may opt to pay employees a living wage. This will provide workers with enough money to adequately cover their basic needs. Living wages also allow workers to save for future goals such as retirement, college, and other investments. In summary, the primary difference between a minimum wage and a living wage is the amount of money an employer must pay employees for their labor. The minimum wage is the lowest amount that is legally required, whereas the living wage is the amount of money needed to cover basic, necessary expenses.

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What is the difference between a minimum wage and a living wage?

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