Companies should safeguard employee health by ensuring all employees have the means to afford health coverage, to eat a balanced diet and to be free of concerns about meeting basic needs. Also, employees should be compensated such that they have the physical and mental means to pursue personal development outside of work.
A living wage affords a decent standard of living for the worker and his or her family. Living wage estimates vary by region and guidance is offered by government agencies, academics and/or NGOs. It is typically higher than the minimum wage or poverty-line wage.
Living wage calculations should focus on employee compensation with respect to standard working hours. So figures should exclude overtime pay and (unless they are guaranteed) productivity bonuses and allowances.