2015 Living Wage Calculator
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Reviewed by Calculator Editorial Team
The 2015 Living Wage Calculator helps determine the minimum wage needed to provide a decent standard of living for a single adult in a specific location. This calculator uses the methodology established in 2015 by the Living Wage Foundation, which considers essential household expenses, rent, and other living costs.
What is the Living Wage?
The Living Wage is the minimum hourly wage that allows a full-time worker to afford a decent standard of living in a particular area. It's designed to cover basic household expenses, including:
- Food and non-alcoholic beverages
- Alcohol and tobacco
- Clothing and footwear
- Household goods and services
- Transport
- Household insurance and services
- Communication
- Recreation and culture
- Rent (for those who rent)
The Living Wage is calculated annually and varies by location due to differences in living costs. The 2015 calculations were based on data from the Office for National Statistics (ONS) and other official sources.
How to Calculate the 2015 Living Wage
Calculating the Living Wage involves several steps to determine the minimum hourly wage that covers essential living costs. The process includes:
- Determining the cost of essential goods and services
- Calculating the total annual cost of living
- Adjusting for regional differences in living costs
- Converting the annual cost to an hourly wage
The 2015 Living Wage was calculated based on a full-time worker working 35 hours per week, 52 weeks per year. The final hourly rate was then adjusted for regional differences in living costs.
Formula Used
The 2015 Living Wage was calculated using the following formula:
The Total Annual Cost of Living was determined by summing the costs of essential goods and services, adjusted for regional differences. The final hourly rate was then rounded to the nearest penny.
Worked Example
Let's calculate the Living Wage for a hypothetical location where the total annual cost of living is £22,000.
- Divide the annual cost by 52 weeks: £22,000 / 52 = £423.08 per week
- Divide the weekly amount by 35 hours: £423.08 / 35 = £12.09 per hour
Therefore, the Living Wage for this location would be £12.09 per hour.
Frequently Asked Questions
What is the difference between the National Living Wage and the Local Living Wage?
The National Living Wage is a minimum wage set by the UK government that applies to workers aged 21 and over. The Local Living Wage is a higher rate set by local authorities to reflect higher living costs in specific areas.
How often is the Living Wage reviewed?
The Living Wage is typically reviewed annually to account for changes in living costs and inflation.
Can employers pay below the Living Wage?
Yes, employers can pay below the Living Wage, but they must provide workers with information about the Living Wage and the difference between their pay and the Living Wage.