HR Discussion – A living wage is a socially acceptable level of income that provides adequate coverage for basic necessities such as food, shelter, child services, and healthcare.

According to Investopedia, “A living wage is a socially acceptable level of income that provides adequate coverage for basic necessities such as food, shelter, child services, and healthcare. The living wage standard allows for no more than 30% to be spent on rent or a mortgage and is sufficiently higher than the poverty level.” The majority of companies are required to pay a minimum wage which is significantly lower than the living wage. The Massachusetts Institute of Technology provides a living wage calculator for a number of communities throughout the U.S.: https://livingwage.mit.edu/

Select one community, report on the living wage, and then discuss your opinion as to whether companies should be obligated to pay a living wage in that community? Discuss the ramifications if companies pay the living wage. Include the perspectives of the stakeholders – the companies and the businesses in those communities.

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