living wage

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Is a wage that is sufficient to provide a reasonable standard of living and full participation in the society in which an employee is living. Proponents of a living wage typically calculate its level by estimating the expenditure that is required for a decent standard of living. They also suggest that the statutory minimum wage is below the level of a living wage. In the USA, there has been a substantial living wage movement in recent years that has pressed public authorities to adopt living wage ordinances that require public contractors and firms in receipt of public grants and subventions to pay living wages. This movement has more recently migrated to the UK, and there has been a successful living wage campaign in the East End of London. A small but growing number of public authorities in Britain have adopted living wage policies, including the Greater London Authority, the Scottish Executive, and the Wales Assembly Government. [See contract compliance and low pay.]

Subjects: Human Resource Management.

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