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

A minimum wage and a living wage are two different types of wages employers are legally obligated to pay their employees. The primary difference between the two is the income level they are set at and the populations they are intended to help. The minimum wage in Texas is currently set at $7.25 per hour. The minimum wage was created with the goal of protecting low-skilled and low-income workers by ensuring they earn a certain level of compensation for their labor. The minimum wage is meant to provide basic living expenses and ensure that work is, at least, worth the effort. A living wage is also legally required in Texas, but is set at a much higher level. A living wage takes into consideration the wages required to provide basic necessities to employees as well as provide a path to financial stability. Living wages are meant to provide employees with higher pay that takes into account the cost of living in the area. In Texas, a living wage is $13.03 per hour based on the average cost of living. Thus, the main difference between a minimum wage and a living wage is the amount of money paid to employees for their labor. A minimum wage is the minimum wage an employer is required by law to pay while a living wage is a higher wage meant to provide employees with enough income to meet their basic needs.

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

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