Maryland Cost of Living Wage Calculator 2019

In 2019, Maryland established a cost of living wage to help workers earn enough to cover basic needs in the state. This calculator helps you determine what that wage was in 2019 and how it compares to the federal minimum wage.

What is the Cost of Living Wage?

The cost of living wage is the minimum hourly wage needed to cover basic living expenses in a specific area. In Maryland, this wage is designed to ensure workers can afford essentials like housing, food, transportation, and healthcare.

Maryland's cost of living wage is based on the federal poverty level and adjusted for local expenses. It's important to note that this is not the same as the federal minimum wage, which is set by the U.S. government.

The cost of living wage is different from the federal minimum wage. The federal minimum wage is a fixed amount set by the U.S. government, while the cost of living wage is adjusted for local expenses.

How to Calculate the Maryland Cost of Living Wage

The Maryland cost of living wage is calculated using the following formula:

Cost of Living Wage = (Federal Poverty Level × Cost of Living Adjustment Factor) / 160

Where:

Federal Poverty Level - The official poverty level set by the U.S. government
Cost of Living Adjustment Factor - A factor that adjusts the federal poverty level for local expenses
160 - The average number of hours worked in a week

In 2019, Maryland used a cost of living adjustment factor of 1.35 to calculate its cost of living wage.

2019 Maryland Cost of Living Wage Data

In 2019, the Maryland cost of living wage was $14.25 per hour. This was calculated using the following values:

Federal Poverty Level for a single person: $12,760
Cost of Living Adjustment Factor: 1.35
Average hours worked per week: 160

Using these values, the calculation was as follows:

Cost of Living Wage = ($12,760 × 1.35) / 160 = $14.25

This means that to cover basic living expenses in Maryland in 2019, a worker needed to earn at least $14.25 per hour.

Comparison with Federal Minimum Wage

In 2019, the federal minimum wage was $7.25 per hour. This is significantly lower than Maryland's cost of living wage of $14.25 per hour.

Wage Type	2019 Amount
Maryland Cost of Living Wage	$14.25/hour
Federal Minimum Wage	$7.25/hour

This comparison shows that Maryland's cost of living wage was more than double the federal minimum wage in 2019. This reflects the higher cost of living in Maryland compared to the national average.

FAQ

What is the difference between the cost of living wage and the minimum wage?: The cost of living wage is adjusted for local expenses, while the minimum wage is a fixed amount set by the federal government. The cost of living wage is generally higher than the minimum wage.
How is the cost of living wage calculated?: The cost of living wage is calculated by adjusting the federal poverty level with a cost of living adjustment factor and then dividing by the average number of hours worked in a week.
Why is the cost of living wage important?: The cost of living wage helps ensure that workers can afford basic necessities like housing, food, and healthcare. It's a way to measure the true cost of living in a particular area.
How does the cost of living wage compare to the federal minimum wage?: In 2019, Maryland's cost of living wage was $14.25 per hour, while the federal minimum wage was $7.25 per hour. This shows that the cost of living wage is significantly higher than the federal minimum wage.
Is the cost of living wage the same as the living wage?: No, the cost of living wage is different from the living wage. The living wage is a higher amount that aims to provide a comfortable standard of living, while the cost of living wage is focused on covering basic necessities.