Step 1: Build understanding 1.1 What are living wages and living income?
The concepts of living wage and living income share a goal of achieving a decent standard of living for households. Living wage refers specifically to the context of hired workers (in factories, on farms, etc.), whereas living income refers to any self-employed income earner, such as farmers.
The concept of living income
A living income enables farmers to consistently sustain their families, invest in their farms and make farming a possible vocation for the next generation. The income that a household earns can come from multiple sources, e.g. through the sales of farm-grown products, as well off-farm business (seasonal labour). A living income refers to the – often diversified – household income that would be needed for the household to at least afford a minimum decent standard of living. A living income benchmark is derived from calculating the cost of a decent standard of living in a particular place.
