Economics · Labour Economics
Which of the following best describes the difference between a Minimum Wage and a Living Wage?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Minimum wage is adjusted daily based on inflation indexation, whereas living wage remains fixed over statutory long-term cycles.
- 2Minimum wage guarantees a legally binding basic subsistence income, while a living wage encompasses a decent standard of living covering food, housing, healthcare, education, and essential contingencies.✓
- 3Minimum wage is a legal mandate across all unorganized sectors, while living wage is strictly determined voluntarily by municipal bodies.
- 4Minimum wage ensures a worker's right to leisure, while living wage ensures access to social security and pension assets.
Correct answer
Minimum wage guarantees a legally binding basic subsistence income, while a living wage encompasses a decent standard of living covering food, housing, healthcare, education, and essential contingencies.
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