What is the difference between a minimum wage and a living wage?
Minimum wage and living wage are terms often used in conversations about wages, but many people may not understand the difference between the two. In California, the minimum wage is the lowest wage allowed by law that employers can legally pay their employees. It is set and enforced by the state government, and it changes from year to year depending on a variety of factors. The current minimum wage in California is $12 an hour for employers with 26 or more employees, and $11 an hour for employers with 25 or fewer employees. Living wage, on the other hand, is an amount of money that is considered sufficient to cover basic needs of an individual or family, such as food, housing, clothing, and utilities. It is not legally mandated, but is based on local cost of living calculations that are created by organizations like MIT Living Wage Lab and the National Low Income Housing Coalition. In California, the living wage is typically higher than the minimum wage, as it takes into account other factors like taxes, housing expenses, and transportation costs. For example, in Los Angeles, the current living wage is $14.25 an hour, while the minimum wage is $12 an hour. To sum up, the main difference between minimum wage and living wage is that minimum wage is a mandated wage, set by the state, while living wage is a calculated amount of money, based on local cost of living and designed to cover basic needs of an individual or family.
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