What Are Basic Needs and Livable Wages in VT?
As defined by the Joint Fiscal Office's Basic Needs Budgets, which are updated every other January and are derived from federal and state data sources, basic needs consist of: food, rent, utilities, health care (% paid by employee), transportation, childcare, clothing/household, telephone, personal expenses, renter's insurance, dental care, life insurance, and 5% savings. The methodology also incorporates the state and federal taxes that would be paid given annual income needed to cover these expenses. For a full understanding of the methodology, assumptions, and data sources used to calculate livable wages in Vermont, go to www.leg.state.vt.us/jfo.
The following are the 2007 livable wage figures, produced by the Joint Fiscal Office using 2006 data. These figures assume some amount of employer paid health insurance.
Family Size |
Urban |
Rural |
||
Hourly |
Annual |
Hourly |
Annual |
|
| 1 adult | $13.94 |
$29,998 |
$14.57 |
$30,307 |
| 1 parent, 1 child | $21.57 |
$44,869 |
$21.23 |
$44,168 |
| 1 parent, 2 children | $27.23 |
$56,640 |
$23.95 |
$49,820 |
2 adults, no children |
$11.19 ea. |
$23,283 ea. |
$11.94 ea. |
$24,843 ea. |
2 parents, 2 children, 1 salary |
$24.99 |
$51,986 |
$24.79 |
$51,562 |
2 parents, 2 children, 2 salaries |
$17.79 ea. |
$37,003 ea. |
$17.24 ea. |
$35,868 ea. |
Assumptions: FT hours (2080/yr), partial health care (84%) paid by employer (without this benefit, livable wage rates increase by $2-5 per hour), USDA Moderate Cost Food Plan, urban = Chittenden County, rural = rest of Vermont.
NOTE: There is no ONE livable wage number, nor can it be mandated by the state. The basic needs budgets and corresponding livable wage figures are provided as a reference point for what it costs to live in Vermont. Employers are encouraged to use this information when setting compensation levels, as a complement to the market survey approach.
Print this Page