Work out living wage comparison instantly with clear inputs, formula shown and shareable results.
A living wage is calculated from the real cost of a basic acceptable standard of living in a location, and is typically well above the statutory minimum. The gap shows what closing it would cost annually per employee.
Living wage gap
Annual gap = (living wage - actual pay) × hours per week × 52
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
The minimum is a legal floor set politically; a living wage is computed from local living costs and is voluntary.
Housing dominates the calculation, and housing costs differ sharply between locations.