AJP Living Wage Calculation Worksheet (Draft updated 11.17.2016) 2) Living Wage Calculators – How they compare to the AJP Definition There are many different living wage calculators that can help to quickly provide a snapshot for what a living wage may look like in your region. However, not all calculators are constructed equally, and not all calculators include the AJP categories that are covered in the living wage definition. Here is how the AJP categories compare to those covered in three different calculators: AJP Standards: Living Wage Definition MIT Living Wage Calculator (2012) Economic Policy Institute’s Family Budget Calculator (2008) Nutrition (food) Healthcare Childcare Transportation Housing and energy Savings (10%) Clothing Food Medical Childcare Transportation Housing Food Healthcare Childcare Transportation Housing X (in “other”) X X X Other X X X (in “other necessities”) Other Necessities X X Thompson County Workers’ Center: Living Wage Certification (2013) Food Healthcare Transportation Rent Savings (in “Miscellaneous”) Miscellaneous Communication Recreation Additional living wage calculators Including a living wage calculator in this document is not necessarily a recommendation of that calculator by AJP. Users must critically assess the applicability of different calculator to the AJP standard of a living wage and make up for gaps in overlap with our definition. http://livingwagecanada.ca/index.php/living-wage-communities/saskatchewan 1 3) Recommended approach: Using a Calculator alongside the AJP definition Determining values for each of these categories included in a living wage is a complex process. The resources provided in the commonly used calculators, such as the MIT calculator, are thoroughly researched and easily accessible. And furthermore, they are predefined for a variety of cities and states. Therefore AJP recommends starting with the MIT Living Wage Calculator, and making certain adjustments to ensure that all AJP categories of a living wage are covered. If there is a locally adapted living wage calculator in your region, such as the Thompson County Workers’ Center study referenced above, you may choose to use this instead of the MIT calculator. In order to include all the AJP definition categories in your living wage calculation, you will need to make a few estimates in addition to the information provided by the MIT calculator. The following worksheet provides a guide for ensuring that all categories of a living wage are covered. Step by Step: 1) Enter your state, city, or county information into the MIT Living Wage Calculator. A chart is generated with an hourly living wage according to household size, and beneath it, estimates for annual expenses. 2) Enter the estimated annual expenses given by MIT in the corresponding boxes below. 3) You will need to do your own calculation for the savings category. Savings: AJP requires a 10% savings be feasible based on a living wage. To calculate this, first completely fill in the other categories and the education estimate, and calculate a subtotal. Take 10% of this subtotal, and add it back in to the grand annual total. 2 AJP Living Wage Worksheet AJP living wage categories MIT Living Wage Calculator data (or other) Additional estimates or modifications Nutrition (food) Healthcare (If subsidized by employer, use MIT calculator estimate. If not part of the job benefits, include additional estimate, based on regional data or discussion with employee (see Appendix 2 for more information.) Childcare (IF APPLICABLE) Transportation Housing Other/Miscellaneous (Potable water, clothing, etc) Subtotals: A. B. Total for A + B C. Savings (10% of total, thus of C. --------------------- > Take value in C x 0.1) Grand annual total, C+D E. Monthly total (E divided by 12) F. Weekly total (F divided by 4) G. HOURLY TOTAL (G divided by 40 or 48) 3 D. Notes
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