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 that affects many workers in Pennsylvania. A minimum wage is the minimum amount of money that an employer is legally required to pay each employee per hour, governed by state and federal laws. In Pennsylvania, as of July 2020, the minimum wage is $7.25 per hour. Although this is meant to provide a baseline for how much employees should be paid, it is often far below what is needed to make a living. A living wage is a wage calculated to accommodate the basic needs and normal living expenses of a person living in a specific geographic area. These are usually determined on a state-by-state basis, and can be much higher than the mandated minimum wage. In Pennsylvania, the living wage is estimated to be $16.87 per hour for a single adult worker and $32.51 per hour for a single-parent family with two children. The purpose of a living wage is to ensure that no full-time worker is living in poverty. That said, not all employers are required to pay a living wage. The decision is up to the individual company, and many employers choose to pay a wage that is below the living wage and closer to the minimum wage. It is important for workers to understand the difference between their minimum wage and the living wage so they can make sure they are appropriately compensated for their work.

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

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