What is the difference between a minimum wage and a living wage?
The difference between a minimum wage and a living wage is an important one to understand. In Colorado, the minimum wage is the lowest amount that employers can pay their employees. This is the legal minimum and is currently set at $12.00 per hour for regular employees and $8.90 for tipped employees. The living wage is different in that it is the amount that a person needs to earn in order to cover basic living expenses. This amount may be higher than the minimum wage, depending on the cost of living in a certain area. For example, in Denver, Colorado, the living wage is estimated to be $14.42 per hour, based on the estimated cost of basic living expenses for an adult with one child. This living wage is substantially higher than the current minimum wage in Colorado and requires employers to pay employees a higher amount in order to cover these basic living expenses. It is important to note that the minimum wage is not always the same as a living wage. While the minimum wage in Colorado meets the legal requirements, it may not be enough to cover the cost of living in a certain area. A living wage is the amount an individual needs to earn in order to provide for themselves and their families. It is important for employers to understand the difference between the two and to ensure that their employees make a living wage if possible.
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