| The Living Wage standards presented here come from three different groups, among many, attempting to arrive at a better method of measuring the basic needs of families and individuals. |
Standard 1: National Priorities Project |
| The National Priorities Project (NPP) developed a conservative family budget from a detailed methodology that can be obtained from NPP. The NPP Living Wage for a family of three in Delaware is $14.38 and $15.88 for a family of four. |
Standard 2: Economic Policy Institute |
| The EPI Living Wage for Delaware is even more detailed and painstaking, with account made for variations in cost by county, as well as the age and sex of family members. The methodology was developed and applied in two publications referenced below. The EPI Living Wage standard for Delaware is the highest of the three, with a Living Wage for a family of three ranging from $15.23 to $15.92. The range for a family of four goes from $17.56 to $20.74. |
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Table 25: Three Delaware Living Wage Standards |
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Delaware Living Wage Standards |
Median Family Income |
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| Family of 3 | 1 | 2 | 3 | |||||||
| National Priorities Project | Economic Policy Institute | House
the Homeless
(Two-bedroom) |
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| Annual | Hourly | Annual | Hourly | Annual | Hourly | Annual | Hourly | |||
| NCC | $29,910 | $14.38 | $32,848 | $33,107 | $15.79 | $15.92 | $29,080 | $13.98 | $72,100 | $34.66 |
| Kent | $31,533 | $31,704 | $15.16 | $15.24 | $25,760 | $12.38 | $50,400 | $24.23 | ||
| Sussex | $31,686 | $31,708 | $15.23 | $15.24 | $24,360 | $11.71 | $47,000 | $22.60 | ||
| Family of 4 | 1 | 2 | 3 |
Median Family Income |
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| National Priorities Project | Economic Policy Institute | House
the Homeless
(Two-bedroom) |
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| Annual | Hourly | Annual | Hourly | Annual | Hourly | Annual | Hourly | |||
| NCC | $33,026 | $15.88 | $37,700 | $43,139 | $18.13 | $20.74 | $29,080 | $13.98 | $72,100 | $34.66 |
| Kent | $36,346 | $40,833 | $17.47 | $19.63 | $25,760 | $12.38 | $50,400 | $24.23 | ||
| Sussex | $36,527 | $40,746 | $17.56 | $19.59 | $24,360 | $11.71 | $47,000 | $22.60 | ||
| Sources:
(1) Working Hard, Earning Less, The National Priorities Project, http://www.nationalpriorities.org (2) How Much is Enough? and Hardships in America, Economic Policy Institute, http://www.epinet.org (3) House the Homeless, Austin, Texas, http://www.UniversalLivingWage.org |
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Standard 3: House the Homeless |
| The final Living Wage standard is based on the fair market rent (FMR). It comes up with a range from $11.71 to $13.98, assuming the family of four would be able to live in a two-bedroom unit. (Including the very real possibility of needing a three-bedroom unit for the family of four increases the upper range of the Living Wage to $18.96). |
| House The Homeless, Inc. (HTH) is a nonprofit organization based in Austin, Texas and formed in 1989. Its stated mission is education and advocacy around issues that cause and prevent homelessness. HTH, whose Board of Directors is comprised of no less than 60% homeless and formerly homeless citizens, has the goal of ending "homelessness" in our lifetime. |
| In April 2001, HTH launched its Universal Living Wage Campaign with these words: |
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"We believe that a large portion of the tax burden imposed on taxpayers for public assistance programs can be drastically reduced. This can be done if all minimum wage employers would stop hiding behind the Federal Minimum Wage of $5.15 per hour and simply pay a Fair Living Wage which is related to the cost of Housing. |
| " The concept is simple. It is based on the premise that if a person works 40 hours a week, then he/she should be able to afford basic housing. We use two existing Federal guidelines to determine what the Universal Living Wage should be. The first guideline (a HUD standard also used by banking institutions across America) dictates that no more than 30% of a person's gross monthly income should be spent on housing. The second guideline, the Fair Market Rents (FMRs) are established by HUD throughout the country for each municipality and all other areas. Therefore, the Universal Living Wage will vary per area in accordance with the FMR. FMRs are based on gross rent estimates which include shelter, rent and the cost of utilities except telephone service. |
| "We believe that this format, using already established government guidelines, enables us to utilize existing government formulas to easily justify specific Universal Living Wage figures that are based on the need for housing and are appropriate to each municipality and outlying areas." |
The Universal Living Wage Formula as a ($9.14) Minimum Wage Standard for Delaware |
| The Universal Living Wage makes a simple and powerful argument. Housing is the heaviest household burden, and the poorest people in a community should be able to make enough working full-time to afford the very cheapest housing. The fair market rent for an efficiency in Delaware (statewide) is $475. The table below elaborates the Universal Living Wage methodology. The advocates of a Universal Living Wage promote the passage of new state minimum wages based on, at the very least, the efficiency apartment FMR. This argument has the appeal of being a wage that is not tied to any particular sector of the labor force (e.g., public employees) and it takes as its primary consideration: the homeless of our community. |
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Table 26: The Universal Living Wage Proposal: A New Delaware Minimum Wage |
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| 1. | HUD STANDARD: No more than 30% of a person's gross income should be spent on housing. | |
| 2. | HUD FAIR MARKET RENT: (Efficiency Apartment in Delaware) | $475.00 |
| 3. | TOTAL GROSS MONTHLY INCOME: $475 divided by .3 | $1,583.33 |
| 4. | WORK HOURS: 40 hours/week @ 4.33 weeks/month = 173.33 work hours/month, 173.33 work hours X 12 months = 2080 hours/year. [ Premise: Anyone working 40 hours per week should be able to get housing and get off of the streets. (1)] | |
| 5. | Total Gross Monthly Income of $1583.33 X 12 months | $18,999.96 |
| 6. | NEW HOURLY WAGE in Delaware $18,999.96 divided by 2080 Hours/Year = | $9.14 |
| 7. | Total
Monthly Budget: Total Gross Monthly Income (2) = $1,583.33 Fed. Taxes, Soc Sec., Medicare = $402.40 Housing Costs = $475.00 Remaining for: Medical, Clothing, Food, Transportation and Telephone = $705.93 |
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| Notes: (1) Whether a person works 4 hours per week or 40 hours per week, they should be paid at the full 40 hour rate. A full hours work deserves a full hours wage. (2) Minus $266.49 for Federal Income Tax, $110.15 for Social Security, and $25.76 for Medicare. The Federal Income Tax rate (15%) is based on the monthly deductions outline in the Internal Revenue Circular E, Employers' Tax Guide (Rev. Jan, 2000), Social Security is 6.2% of gross monthly income, and Medicare is 1.45% of gross monthly income (Total equals $402.40) | ||
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Source: House the Homeless, PO Box 2312, Austin, TX 78768. www.universallivingwage.org |
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by Universal Living Wage
PO Box 2312, Austin, TX 78768. All rights reserved.
This page last updated May 28, 2002. Thank you for visiting