# Living Wage

*Everyday Money — Finicade finance glossary*

A living wage is the pay a full-time worker needs to cover basic local costs — housing, food, transport, childcare — without public assistance. Unlike the minimum wage it's calculated, not legislated, and it varies enormously by geography: living-wage estimates for expensive US metros can be double the federal minimum. Employers adopt it voluntarily as an accreditation. The core disagreement is what counts as 'basic', which is why credible estimates always publish their basket.

**Also known as:** real living wage, family sustaining wage

**Related terms:** [Minimum Wage](https://finicade.com/glossary/minimum-wage), [Cost of Living](https://finicade.com/glossary/cost-of-living), [Real Wages](https://finicade.com/glossary/real-wages), [Household Income](https://finicade.com/glossary/household-income)

Source: https://finicade.com/glossary/living-wage