A livable salary in Iowa is the amount an individual needs to earn to cover basic necessities without public or private assistance. For a single adult with no children, this is $20.04 per hour.
Understanding a Livable Salary in Iowa
The concept of a livable salary, often referred to as a living wage, extends beyond the minimum wage or poverty line. It represents the income required for an individual or family to afford basic necessities such as housing, food, transportation, healthcare, and other essential expenses. In Iowa, this amount varies significantly based on household composition and the number of dependents.
For a single adult, the hourly living wage is substantially lower than for a single adult supporting children. This is because the costs associated with raising children, including childcare, food, and healthcare, considerably increase the required income.
Here's a breakdown of the hourly living wage in Iowa for different household compositions:
Household Composition | Living Wage (Hourly) | Poverty Wage (Hourly) | Minimum Wage (Hourly) |
---|---|---|---|
1 Adult, 0 Children | $20.04 | $7.24 | $7.25 |
1 Adult, 2 Children | $45.54 | $12.41 | $7.25 |
- Living Wage: This figure represents the hourly wage an individual must earn to support themselves and their family at a modest yet adequate standard of living, covering essential expenses.
- Poverty Wage: This is the hourly wage equivalent to the federal poverty threshold. Earning this amount means an individual or family is considered to be living in poverty, struggling to meet basic needs.
- Minimum Wage: Iowa's minimum wage is currently $7.25 per hour. As the table illustrates, this amount falls significantly short of a livable wage in all scenarios, particularly for individuals supporting children, highlighting the financial challenges many Iowans face in meeting their basic needs.