What Is a Living Wage?
A living wage is the hourly pay a worker needs to cover basic living costs — such as housing, food, transportation, and health care — in a particular area without public assistance. Unlike the minimum wage, it is not a legal requirement; it is an estimate that varies by location and household size.
Living Wage vs. Minimum Wage
The minimum wage is the lowest pay allowed by law; a living wage reflects actual local costs and is often higher.
How It Is Estimated
Researchers add up local costs for a household type and convert the annual total into an hourly rate based on full-time work.
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.