How much does minimum wage fall below the poverty line?

A minimum wage income falls below the poverty line by more than $2,000 for a two-person household, more than $6,000 for three people, and more than $11,000 for four. According to a 2017 Government Accountability Office (GAO) study, roughly half of all single-parent families with the parent earning minimum wage were living in poverty in 2016.

What is the minimum wage for Living Wage?

A living wage must at least be greater than the poverty level. A worker making the minimum wage of $7.25 per hour would be below the poverty level. Both parents would need to work minimum wage jobs to even hope to reach a living wage. Even those making the minimum wage and living above the poverty level aren’t making a living wage.

Should the minimum wage be adjusted to compensate for inflation?

It should also be adjusted to compensate for inflation. The purpose of a living wage is to make sure that all full-time workers have enough money to live above the federal poverty level. The minimum wage is the wage mandated by law, to keep employees above the poverty level in their area.

How would a minimum wage increase affect average family income?

However, income would fall for some families because other workers would not be employed and because business owners would have to absorb at least some of the higher costs of labor. For those reasons, a minimum-wage increase would cause a net reduction in average family income.

Is it possible to live on minimum wage in America?

Real People Living on Minimum Wage. Judging by Kai’s story, it looks like it is just barely possible to live on minimum wage — in some cases. A single person with no debts can stretch an income of $1,222 a month to cover all the necessities of life, but they’ll have nothing left over for savings.

Can my employer pay me less than the minimum wage?

That’s right. Employers can legally pay workers less than the minimum wage if they also receive tips, although they must make up the difference if an employee’s wages plus tips come out to less than the minimum.

Is it possible to earn minimum wage as an independent adult?

However, earning minimum wage when you’re an independent adult is entirely different. Having to pay rent, eat, get to work each day and have basic medical and other needs covered on $7.25 an hour is no easy task. But it can be done with some effort. Here are some suggestions for spending, saving and living while earning minimum wage.