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Wage Level Definitions
CREA has developed the following definitions of levels of wages. While other levels are possible, we have found that in discussions about wages, it is helpful to arrive at a acceptance of these definitions of terms.
Level 1: Marginal Survival Wage
Wage level does not
provide for adequate nutritional needs. Starvation is prevented, but
malnutrition, illnesses, and early deaths are
the result.
Level 2: Basic Survival Wage
Wage level allows for
meeting immediate survival needs including basic food, used clothing,
minimal shelter, fuel for cooking.
Level 3: Short Range Planning Wage
Wage level meets basic
survival needs. Possibility of small amount of discretionary income allows
for minimal planning beyond living from paycheck
to paycheck. Allows for occasional purchase of needed item(s)
as small amounts can be set aside after meeting basic survival needs
Level 4: Sustainable Living Wage
Wage level meets basic needs including food,
clothing, housing, energy, transportation, health care, and education.
Ability to participate in culturally required activities (including births
and related celebrations, weddings, funerals and related activities). Also
allows for the setting aside of small amounts of money (savings) to allow
planning for the future purchase of items and the meeting of needs.
Level 5: Sustainable Community Wage
In addition to meeting basic needs and allowing
the worker to set aside money for future purchases, allows for the
availability of enough discretionary income to allow the worker to support
the development of small businesses in a local community, including the
support of cultural and civic needs of the community. Wage levels allow
for long range planning and participation.
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