DO YOU KNOW THE DIFFERENCE BETWEEN A LIVING WAGE AND A MINIMUM WAGE?

If you read the PDN last week, the difference between a minimum wage and a living wage isn’t quite clear. The minimum wage is the lowest hourly, daily or monthly wage all employers may legally pay to their employees. Currently the federal minimum wage is $6.55/hr and will increase to $7.25/hr effective July 24, 2009. A living wage on the other hand only applies to workers whose employers have benefitted from a tax incentive, such as the Qualifying Certificates on Guam. The living wage is set to be higher than the minimum wage and is calculated as the amount it costs for a worker to make a decent living. Several states have implemented a living wage in efforts of gaining something back from employers who have benefitted from tax incentives. The living wage is targeted to a certain group of workers versus all workers in a given state, in our case territory. Click here to read more about the Living Wage