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 difference to understand in Mississippi. A minimum wage is the absolute lowest hourly rate that an employee may legally be paid for their work, set by the federal or state government. In Mississippi, the minimum wage is currently $7.25 per hour, which is in line with the federal minimum wage. A living wage, on the other hand, is not set by the government and is instead determined by market forces. It is an hourly wage that is high enough for a person to comfortably cover basic needs such as food, housing, and transportation. This amount will vary depending on the region and cost of living. As of 2021, the living wage for Mississippi is estimated to be $11.22 per hour. Though the minimum wage is set to help workers stay out of poverty, it often does not account for regional costs of living, meaning that it is not sufficient to cover basic necessities. This is why living wages are so important - for many, they offer enough money to cover the costs of living and even allow people to save a small amount. In Mississippi, the minimum wage is lower than the living wage, meaning that workers should ideally be earning more than the minimum wage to have a reasonable standard of living.

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

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