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

Minimum wage laws and living wage laws both require employers to pay employees an hourly wage, but the two are quite different. Minimum wage laws in Mississippi set the current rate of wages that employees must receive for all hours worked. Mississippi’s minimum wage is currently set at $7.25 per hour for non-exempt employees. All Mississippi employers must pay their employees at least this rate. Living wage laws, on the other hand, require employers to pay a wage that provides a standard of living above the poverty line. While a minimum wage typically covers basic goods and services, a living wage provides a wage that meets the cost of living in a particular area, taking into account housing, food, transportation, and other necessities. In Mississippi, living wage rates vary by municipality and are typically higher than the statewide minimum wage. In summary, minimum wage laws guarantee employees a certain minimum rate of pay, whereas living wage laws require employers to pay employees an hourly wage that indicates an acceptable standard of living in their area.

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

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