What does the term 'living wage' entail?

The term 'living wage' refers to a wage that is considered sufficient to meet the basic expenses of living and allows workers to support themselves and their families above the poverty line. This concept is rooted in the idea that every worker should earn enough to afford not only essential needs like food, housing, and healthcare but also some degree of discretionary spending and savings, which contribute to a more stable and fulfilling quality of life.

This understanding recognizes that simply earning minimum wage or a wage that covers only basic necessities does not truly allow workers to thrive, as it often leaves them vulnerable to economic instability and unable to cope with unexpected expenses. Furthermore, a living wage goes beyond just aligning with industry standards or performance-related pay, as those factors do not necessarily account for the cost of living variations nor do they ensure workers can achieve financial security. Thus, option B captures the essence of a living wage effectively.