The Key Difference Between Minimum Wage and Living Wage

minimum wage vs living wage
Feature	Minimum Wage	Living Wage
Definition	The legally mandated lowest hourly wage employers can pay workers.	The estimated income needed to cover basic living expenses comfortably.
Purpose	To set a legal wage floor and prevent exploitation.	To ensure workers can afford essential needs like housing, food, healthcare.
Determined By	Set by government laws or regulations.	Calculated based on cost of living and local expenses.
Scope	Applies universally within a jurisdiction regardless of cost of living.	Varies by location and household needs.
Level	Often lower than the actual cost of living.	Generally higher than minimum wage to meet living standards.
Impact on Workers	Provides basic income but may not cover all expenses.	Aims to improve quality of life and reduce poverty.