What are the different methods to calculate a living wage?

What are the different methods to calculate a living wage?

There are several methods to calculate a living wage, including the Basic Needs Approach, the Market Basket Approach, and the Income Approach. Each method has its own criteria and calculations.

Can you explain the Basic Needs Approach?

The Basic Needs Approach calculates a living wage based on the cost of essential goods and services required for a decent standard of living, such as food, housing, and healthcare.

How does the Market Basket Approach differ from the Basic Needs Approach?

The Market Basket Approach focuses on a specific set of goods and services that a typical household would purchase, while the Basic Needs Approach is broader and considers overall needs for a decent life.

Which method is most commonly used?

The Market Basket Approach is often the most commonly used method, as it provides a clear and tangible way to assess living costs based on actual consumer behavior.