Can people live on minimum wage in NC? Here’s how it compares to cost of living
As inflation continues to affect a U.S. economy recovering from the COVID-19 pandemic, some Charlotte banks have raised their minimum wages to meet the demand for competitive salaries.
Truist Financial plans to raise its minimum wage to $22 per hour this fall, the company announced Wednesday.
Bank of America raised its minimum hourly wage to $22 in June, according to a news release. Employee benefits, which are paid for by the company, add roughly $14 per hour to that amount.
Wells Fargo, Ally Financial and Fifth Third Bancorp have made similar moves over the last year.
Other companies like CVS Health, Starbucks, Walgreens and Walmart have raised their minimum pay to as much as $15 per hour since the start of the pandemic, Forbes reported.
However, the minimum wage in North Carolina, which is the same as the federal minimum wage, is $7.25 – an amount that has remained unchanged for more than decade.
Here’s how the state minimum wage compares to the cost of living in North Carolina.
What is the living wage in North Carolina?
Although some companies have raised their minimum wages to as much as $22 per hour, data show it is only enough to get by for many workers.
The living wage for a single adult with no children in North Carolina is $17.14, and the poverty wage is $6.19, according to Massachusetts Institute of Technology’s living wage calculator.
For a single adult with one child, the living wage is nearly double, and the poverty wage jumps to $8.38. And the amount keeps growing as the number of adults and children in the home increases.
How much do basic needs cost in North Carolina?
With inflation affecting the cost of everything from food to gas, it’s getting harder for minimum wage employees to afford necessities. Here are what basic needs in North Carolina cost now:
Gas: The current average price for a gallon of gas in North Carolina is $4.42, according to AAA.
Groceries: MIT’s living wage calculator estimates that a single adult with no children in North Carolina currently spends $3,351 on groceries annually, or about $280 per month.
Housing: The typical value of a home in Charlotte is $396,919, up 30% from a year ago, according to Zillow. And according to Zumper, an online rental platform, the average rent for a one-bedroom apartment in Charlotte is $1,490.
This means a single person who rents a one-bedroom apartment in Charlotte and earns minimum wage working 60 hours per week would only have around $250 left over per month for other expenses.
Other expenses like child care, medical bills, and transportation can add up to nearly $30,000 annually for a single adult with one child, according to MIT’s estimate.
When could North Carolina raise its minimum wage?
In the last year, 26 states have raised their minimum wage, but North Carolina was not one of them.
Some Democrats in the N.C. House have introduced legislation to raise the state minimum wage, but they have been unable to obtain support from Republican leaders.
An estimated 1.3 million workers in the state would benefit from a minimum wage of $12 per hour, including 750,000 women, according to the North Carolina Justice Center.
This story was originally published July 6, 2022 at 1:57 PM.
