A living wage is the minimum income necessary for a worker to meet their basic needs, such as food, housing, and healthcare, without requiring additional financial assistance. It is designed to ensure that employees can maintain a decent standard of living and participate fully in society. The concept of a living wage differs from the federal or state minimum wage, which may not be sufficient to cover essential expenses. Various organizations and researchers calculate living wage rates based on local costs of living, taking into account factors like inflation and regional economic conditions.