Tags: Minimum Wage | minimum wage | difference | living wage | chicago

What's The Difference Between Minimum Wage and Living Wage in Chicago?

By    |   Tuesday, 12 May 2015 10:31 AM

Illinois is among more than half the states in the U.S. to have a higher rate than the federal minimum wage of $7.25, according to the National Conference of State Legislatures.

Plans are underway to increase minimum wages incrementally within four years with Chicago officials offering higher wage increases for workers.

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The city of Chicago plans to raise its minimum wage gradually to $13 an hour by 2019, a measure that surpasses rates by state legislators. State officials voted to increase the minimum wage from $8.25 to $9 in 2015 with plans to bring the hourly wages to $10 by 2016 and proposals for $11 an hour by 2019, according to Wand TV.

After that, the minimum wage will be adjusted each year for inflation, according to the Consumer Price Index, with a limit of 2.5 percent in increases. Inflationary hikes would not occur after 2019 if unemployment hits 8.5 percent or higher.

A living wage for one adult in Chicago and Cook County is more than $10 an hour, according to a report from Dr. Amy K. Glasmeier of the Massachusetts Institute of Technology.

Vote Now: How Do You Feel About the Minimum Wage?

An adult supporting one child would need more than $20 an hour to reach a living wage, the report states. The city and state of Illinois have kept their minimum wages above the poverty wage, which was estimated at $5.21 for one adult in Chicago when the minimum wage was at $8.

The MIT report focused on such expenses as food, child care, medical fees, housing and transportation. It found employees in management, engineering, legal services, education and some healthcare fields were making above a living wage for Chicago.

However, many occupations were below the living wage for one adult supporting one child, the MIT analysis concluded. Workers in social services, arts, design, media, healthcare support, grounds cleaning, personal care, sales, office support and farming were below the living wage, based on typical hourly wages.

Typical wages for food preparation, food servers, and personal care were below the living wage of $10 for one adult with no children.

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Illinois is among more than half the states in the U.S. to have a higher rate than the federal minimum wage of $7.25, according to the National Conference of State Legislatures.
minimum wage, difference, living wage, chicago
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2015-31-12
Tuesday, 12 May 2015 10:31 AM
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