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The minimum wage in the United States is no longer a living wage. At $7.25, the federal minimum hasnât kept up with the cost of living since the late 60s, and thereâs a growing movement among workers, policy analysts, state and city governments â and even some employers â to raise it.
The living wage is an informal benchmark, not a legally enforceable minimum level of pay, like the national minimum wage. The national minimum wage is set by the business secretary each year on the advice of the Low Pay Commission. It is enforced by HM Revenue and Customs (HMRC).