In public policy, a
living wage is the minimum income necessary for a worker to meet their basic needs. This is not necessarily the same as subsistence, which refers to a biological minimum, though the two terms are commonly confused. These needs include shelter (housing) and other incidentals such as clothing and
nutrition. In some nations such as the
United Kingdom and
Switzerland, this standard generally means that a person working forty hours a week, with no additional income, should be able to afford the basics for quality of life,
food,
utilities,
transport,
health care, minimal
recreation, one course a year to upgrade their education, and childcare. However, in many cases
education, saving for
retirement, and less commonly
legal fees and
insurance, or taking care of a sick or elderly family member are not included. It also does not allow for debt repayment of any kind. In addition to this definition, living wage activists further define a living wage as the wage equivalent to the
poverty line for a family of four. This is two adults working full-time with one child age 9 and another of age 4.