Living Wage
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The income level necessary for a worker to meet basic needs — food, housing, transportation, healthcare — without government assistance, typically higher than the legal minimum wage.
## Living Wage
A living wage is the income needed to cover essential expenses and maintain a decent standard of living. Unlike minimum wage (a legal requirement), a living wage is an economic benchmark.
### Living Wage vs. Minimum Wage
| US Examples (2025) | Minimum | Living Wage (Single, No Children) |
|-------------------|---------|-----------------------------------|
| Rural Mississippi | $7.25/hr | ~$15/hr |
| Houston, TX | $7.25/hr | ~$18/hr |
| New York City | $16.50/hr | ~$25/hr |
| San Francisco | $18.67/hr | ~$28/hr |
### Calculation Methodology
MIT's Living Wage Calculator estimates the minimum hourly rate needed to cover: food, housing, transportation, childcare, healthcare, other necessities, and taxes. It varies by family size and location.
### Living Wage Accreditation
- **UK Living Wage Foundation**: Real Living Wage (£12.60/hr, £13.85 London).
- **US**: Over 450 employers have committed to paying a living wage.
- **Global Living Wage Coalition**: Sets benchmarks for developing countries.