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

What is the difference between a minimum wage and a living wage Introduction: The Essence of Wages Greetings, audience! In the realm of employment, wages form the bedrock of financial sustenance. However, not all wages are created equal. Today, we'll unravel the intricacies of two crucial terms: minimum wage and living wage. While they may seem synonymous, they possess distinct connotations and implications. Let's dive in! Minimum Wage: The Legal Foundation Minimum wage, as the name suggests, denotes the lowest hourly rate an employer can pay their employees. It serves as a protective measure, ensuring workers receive a baseline compensation. Governments often set this figure, taking into account factors like inflation, cost of living, and the economy's health. The aim is to prevent exploitative practices and guarantee a fair starting point for all workers. Living Wage: Beyond the Minimum Living wage, on the other hand, extends beyond the bare minimum. It factors in the actual cost of living in a specific region.