Living Wage Worksheet - Agricultural Justice Project

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
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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.
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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)
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D.
Notes