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

The minimum wage in Raleigh, North Carolina, is based on the state's $7.25 minimum wage law, which follows the federal minimum requirement. Many residents in the state are pushing for an increase in the minimum wage to close the gap with what is considered a living wage.

North Carolina is among 21 states to maintain the federal minimum wage, according to the Triangle Business Journal. States must require at least the federal minimum wage for workers, but can go higher if they choose.

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The federal minimum wage has been $7.25 since 2009 and would have to reach nearly $11 an hour to equal the purchasing power of the minimum-wage rate in 1960s, The News & Observer reported.

While President Obama proposed an increase to $10.10 for the federal minimum wage, other proposals go as high as $15 or lower than $10 with gradual increases during a period of years.

The living wage in Raleigh and Wake County is estimated to be $10.98 an hour for one adult, according to an analysis by the Massachusetts Institute of Technology. The report determined the poverty wage for an adult with one child is $7 an hour in the area. An adult with one child would need to make $22.40 for a living wage.

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Many non-professional jobs in the state have annual salaries lower than the living wage, which would be about $22,800 for one adult, according to MIT. According to its analysis, food preparers and servers earn a typical annual salary of $18,480. Personal care and service occupations earn about $20,080. Workers in the grounds cleaning and maintenance fields earn just below the living wage at $21,130 for an average salary. Workers in healthcare support are close to the living wage for one adult at $22,640.

Groups such as the Durham Living Wage Project, based in Asheville, are encouraging private businesses to surpass the minimum wage requirement by awarding certificates to companies that pay people at least $12.33 an hour with no insurance or $10.83 an hour with insurance.

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