What is the term for an hourly rate of pay based on the basic cost of living?

The term "Living Wage" refers to an hourly rate of pay calculated to meet the basic cost of living for individuals and families. This wage is designed to ensure that workers earn enough to afford essential expenses such as food, housing, and transportation, allowing them to maintain a decent standard of living without requiring supplementary financial assistance. The Living Wage often differs from the statutory minimum wage, as it is typically higher, reflecting the actual cost of living in a specific area.

The focus of the Living Wage is on the needs of workers and their families, making it a more holistic approach compared to merely fulfilling the minimum legal requirements for pay. This ensures that employees can sustain themselves and contribute meaningfully to the economy. Hence, the answer appropriately reflects this concept of compensation geared toward meeting basic living expenses.