Salary and Pay Rates
What is the comparison between minimum wage and living wage?
How is minimum wage determined?
Asked in Personal Finance
What are the Forms of wages?
Wages have been classified into three different categories. The categories are living wages, minimum wages, and fair wages. Living wages are often defined as the wages needed in order to provide the necessities in order to live; such as food, clothing, and housing. Minimum wage is determined by the government, and are the lowest wages one can legally earn. Fair wage is the mean between the living wage and the minimum wage.
What is difference between living wages and fair wages and minimum wages?
Minimum wages are set both nationally and statewide. The minimum wage gives employers a guideline as to the legal minimum amount paid to employees. the minimum wage served to keep 86% of workers and their families above the poverty line for a family of four. Today that percentage has dropped to 64%, in effect leaving 36% of wage earners living at or below the poverty line. The current minimum wage amounts are roughly half of what the projected living wage is in any given area. Living wage is defined as the estimated amount of income necessary to live comfortably and put a family into the bracket of middle class.
Asked in Salary and Pay Rates
What is the is the differences of living wage and minimum?
A lot. Living wage is a wage which you can live off of and meet your needs. The minimum wage is the minimum businesses within a jurisdiction are required to pay their wage-based employees (this does not apply to contractors, commission-based employees, or employees subject to receiving tips. One is substantially lower than the other.
What is the minimum wage in Maryland?
Why is the minimum wage different in every state?
Economies differ from state to state. In coastal states (California, New York, Florida, Mass, etc) the cost of living is very high, thus the minimum wage can be higher as a supplement. In the Midwest, (Kansas, Oklahoma, and so forth) the cost of living is very low. A high minimum wage in Kansas would crash the economy, as no one could afford to pay such a wage. As a comparison with living costs, a standard income in Kansas is 35-45 thousand a year, while in California it's 65-75 thousand a year. A very significant difference.