$15 an hour annually is $28,000, before taxes, working 40 hours per week. The new $15 minimum wage will bring in more income for the lowest paid workers. That said, the government’s definition of minimum wage is a “floor,” not a “ceiling.” It’s almost certain that some employees will bring home more than $15 an hour. Many low-income workers are currently making a higher hourly wage due to several other factors such as tips.
How much is $15 an hour in Overtime?
Some employers may be tempted to pay their minimum wage workers overtime at the same rate. Unfortunately, this is not the case. The new minimum wage does not affect overtime pay. The Fair Labor Standards Act still requires that employees be paid 1.5 times their regular pay rate for every hour they work after 40 hours a week.
It’s worth noting that some states have abolished the practice of paying time and a half after 40 hours. This means that in some states, minimum wage workers will be paid the same amount as now.
How Much is $15 an Hour Monthly?
Now that we’ve looked at the hourly wage, it’s also worth examining how much an employee making $15 an hour would make each month. Assuming the employee works 40 hours a week, you will see their monthly payment is $2,400, before takes.
Can you live comfortably on $15 an hour?
While it’s impossible to say with certainty, it’s clear that the new $15 minimum wage will provide significantly more income to the lowest-paid employees. This increase might be enough for a single person to meet basic living expenses. However, for a family of four, it’s likely not.
The unfortunate reality is that $15 an hour is not enough to live comfortably in any state in the U.S. According to MIT’s living wage calculator, a single person would need to make $23 an hour to meet their basic needs. A family of four would need to make $50 an hour. These figures include taxes and other expenses that the MIT calculator does not factor in.
The new minimum wage will be a welcome change for many people who currently make less than $15 an hour. While there will likely be some short-term effects on businesses, most will get through it. Some companies may even benefit from the higher wage since they will have less turnover and a more dedicated workforce.
However, it’s clear that the new $15 minimum wage isn’t enough to meet basic living expenses for most people. You might see more people working two jobs or getting assistance from the government to make ends meet. This is why it’s important to remember that the new minimum wage is just a floor. It’s up to each of us as individuals to make sure we earn enough to meet our needs.