On Jan. 5, Asheville-based nonprofit Just Economics released a new Living Wage Rate for 2022, as well as an updated formula for calculating it here in Buncombe County for the first time since 2011. Buncombe County’s living wage has risen from $17.30 an hour to $17.70 an hour for full + part time employees, with or without health insurance.
The org uses the recently adjusted Universal Living Wage Formula to determine the minimum income folks need to make to meet their basic needs — including food, utilities + other essentials — without public or private assistance.
So, what are the changes to the Living Wage formula?
- The new formula uses ~33 percent of an individual’s monthly income as a measure for housing affordability. Just Economics also accounts for the fact that many landlords require proof that tenants earn at least three times their rent to qualify for a lease.
- The organization has removed the wage subtraction for employers offering health insurance “because an employee will not make three times the Fair Market Rent at the lower rate.” By removing the wage subtraction from the criteria, workers are better able to demonstrate their income is high enough to obtain a rental.
- Assuming that most full time employees take time off during the year, the formula will now be based on 2,000 working hours, rather than 2,080 hours.
How does the boost to the living wage affect you?
The 438 employers that already participate in the org’s Certified Living Wage Program won’t be required to pay the new rate until the end of 2022 because of widespread financial struggles. If you’re interested in having your business Living Wage certified, learn more here.
