What is Living Wage ?
‘Living Wage’ refers to the theoretical minimum income level required to maintain a standard of living and prevent oneself from falling into poverty. It is the amount of money required by individuals or families to afford satisfactory shelter, food and other requirements.
Economists have theorized that the living wage should be high enough that 30% of it could be spent on housing and is sufficiently higher than the legal minimum wage.
However, critics argue that deploying a minimum living wage leads to the establishment of a wage floor, which will prove harmful in the long run for the economy as it makes the companies hire the bare minimum amount of workers leading to unemployment.