In North Carolina, a livable salary, often referred to as a living wage, varies significantly depending on the household size and composition. For a single adult with no children, a livable salary is approximately \$44,845 per year or \$21.56 per hour. However, for a household with two adults (one working) and one child, the required annual salary increases to around \$72,634, which translates to \$34.92 per hour.
Understanding a Livable Wage
A livable wage is the minimum income necessary for an individual or family to afford basic necessities and maintain a modest, but decent, standard of living. Unlike the minimum wage, which is legally mandated, a living wage is calculated based on the actual cost of living in a specific area, taking into account expenses such as:
- Housing: Rent or mortgage payments, utilities.
- Food: Groceries.
- Transportation: Car payments, gas, public transit.
- Healthcare: Insurance premiums, out-of-pocket costs.
- Childcare: If applicable.
- Other necessities: Clothing, personal care, savings, and modest entertainment.
It aims to provide enough income so that individuals and families can meet their needs without relying on public assistance or facing severe financial hardship.
Livable Wage vs. Minimum Wage and Poverty Wage in NC
To put the livable wage into perspective, it's helpful to compare it with North Carolina's minimum wage and the federal poverty wage. These figures highlight the gap between what is legally allowed or considered poverty-level income and what is truly needed for self-sufficiency.
Below is a comparison of these wage benchmarks for different household structures:
| Household Composition | Living Wage (Hourly) | Living Wage (Annually)* | Poverty Wage (Hourly) | Minimum Wage (Hourly) |
|---|---|---|---|---|
| 1 Adult, 0 Children | \$21.56 | \$44,845 | \$7.24 | \$7.25 |
| 2 Adults (1 Working), 1 Child | \$34.92 | \$72,634 | \$12.41 | \$7.25 |
- Annual wages are calculated based on a full-time work schedule of 40 hours per week, 52 weeks per year.
As the table demonstrates, the minimum wage in North Carolina of \$7.25 per hour is significantly lower than the living wage for all scenarios. This underscores that earning the minimum wage may not be sufficient for individuals or families to meet their basic needs in the state. Similarly, the poverty wage represents an income level that often requires external support to cover essential living expenses.
Factors Influencing a Livable Salary
The figures for a livable salary are averages for the state. Actual costs can vary based on several factors:
- Location within NC: Urban areas like Raleigh, Charlotte, or Asheville typically have higher living costs, especially for housing, compared to rural areas.
- Specific Household Needs: Unique healthcare costs, dietary needs, or transportation requirements can affect an individual's specific living wage.
- Number of Working Adults: The calculation above for two adults assumes only one adult is working. If both adults work, the combined income required per working adult would be lower.
Understanding these figures helps individuals and policymakers assess economic well-being and develop strategies to ensure more North Carolinians can earn a self-sufficient income.
