This article applies to credit PA-11: Employee Compensation (STARS 2.1). Older versions of the credit may include different criteria and reporting requirements.
How do I determine the local living wage?
U.S. institutions must use the Living Wage Calculator to look up the living wage for a family composed of “2 Adults, 2 Children” for the community in which the main campus is located. Report the figure that assumes two working adults, not the higher figure that assumes one working adult. For example:
Canadian institutions must use Living Wage Canada’s standards (if a living wage has been calculated for the community in which the main campus is located) or else the appropriate after tax Low Income Cut-Off (LICO) for a family of four (expressed as an hourly wage), Institutions located outside the U.S. and Canada must use local equivalents of the above standards if available or else the local poverty indicator for a family of four (expressed as an hourly wage). A poverty indicator is an official threshold or guideline used to determine poverty level and/or eligibility for public benefits to meet basic needs. See, for example, the European Union at-risk-of-poverty thresholds for a family of two adults and two children.
Why a family of four?
A family of four is used to help harmonize the living wage standards and poverty indicators used in different countries and is not assumed to be the most common or representative family size in any particular context.