What is Living Wage? Differentiate it from minimum wage.

Art.43(DPSP) promises a living wage. In public policy, a living wage is the minimum income necessary for a worker to meet their needs that are considered to be basic. This is not necessarily the same as subsistence, which refers to a biological minimum, though the two terms overlap a lot. These needs include shelter (housing) and others such as clothing and nutrition. This wage generally means that a person working forty hours a week, with no additional income, should be able to afford the basics for quality of life, food, utilities, transport, health care, and minimal recreation. However, in many cases education, saving for retirement, and less commonly legal fees and insurance, or taking care of a sick or elderly family member are not included. It also does not allow for debt repayment of any kind.

The living wage differs from the minimum wage in that the latter is set by law and can fail to meet the requirements to have a basic quality of life. Minimum Wages Act 1948 is an Act of Parliament concerning Indian labour law that sets the minimum wages that must be paid to skilled and unskilled workers. States have their own laws. These wages are periodically revised.

Employee, employer, and the community win with a living wage. Employees would be more willing to work, helping the employer reduce worker turnover, and it would help the community when the citizens have enough to have a decent life.

A related concept is that of a family wage – one sufficient to not only support oneself, but also to raise a family.

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