Since 2009, the federal minimum wage in the U.S. has remained at $7.25 an hour. However, a new Senate bill proposes increasing it to $15 an hour next year, aiming to realign the wage with inflationary factors.
In various states, even where the minimum wage exceeds $15, this amount often falls short of covering average living costs, as highlighted by MIT’s Living Wage Calculator.
This calculator assesses basic living needs to see how much families must earn hourly to afford essentials like food, housing, childcare, and transportation. It provides living wage estimates for all 50 states, counties, and major metropolitan areas.
A recent examination using MIT’s findings indicated that earning $15 per hour isn’t sufficient to meet basic requirements in any state, even when working a typical 40-hour week. The closest approximation comes from West Virginia, where $19.43 an hour is deemed adequate.
Interestingly, whether for a family of four or two working adults, $15 an hour does not provide enough to sustain themselves anywhere. For context, Mississippi has the lowest requirement at $22.43 per hour for two earners.
Additionally, in 15 states and Washington, the calculation shows couples need to earn over $30 per hour to adequately meet basic needs. For example, Massachusetts shows a living wage of $37.71 for two adults with two children.
Some states witness living wage figures that double the proposed federal increase, including California, Alaska, Colorado, and more. A survey recently indicated that families might need an annual income exceeding $200,000 to live comfortably in a majority of states.
This scenario particularly benefits “dinks” — couples with dual incomes and no children.
In 18 states, where both adults work, they can cover their needs while earning less than $15 each hour. According to MIT, Arkansas requires $13.59 per hour, with West Virginia close behind at $13.60.
Other states with living wage estimates for two adults below $15 per hour include Alabama, Indiana, and Iowa, among others.
In Texas, the proposed $15 is nearly adequate, as a dual-income couple may need around $15.04 per hour.
These figures are, of course, estimates, and the unique circumstances for each family can vary widely.
For example, in Little Rock, Arkansas, the living wage rate for a working couple without children is $13.90, while in Hot Springs, it slightly rises to $13.36 — just above the state average.
MIT’s Living Wage Calculator indicates that the current state minimum wage does not suffice to support a family of four or even two working adults.
However, the District of Columbia’s minimum wage surpasses the living wage for families without dual incomes. Here, the minimum wage is $17.50 per hour, increasing to $17.95 on July 1st.
In some metropolitan areas, minimum wages exceed state levels. For instance, Denver’s hourly minimum is $18.81, which is $4 higher than the state’s rate and nearly 50 cents over what’s necessary for a couple without kids.
You can check the estimated living wage for your area using MIT’s Living Wage Calculator.
Will the federal minimum wage increase this year?
This bill enjoys bipartisan support, with Senators from both parties backing the legislation.
However, the GOP-led House and Senate are also focusing on other priorities, including those advocated by former President Trump.
Trump had characterized the current minimum wage of $7.25 as “low” back in December, but the White House has remained silent on the current bill proposed by Senator Hawley earlier this month.
