The cost of living in the island state of Hawaii is considerable, but even so, minimum wage in the Honolulu area has been $7.75 per hour, just 50 cents above the federal minimum rate.
But things there are improving.
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In 2014, the state raised its minimum wage to $10.10 hourly, a rate to be phased in over
four years, USA Today reported. The wage will bump to $8.50 on Jan. 1, 2016; $9.25 on Jan. 1, 2017; and $10.10 on Jan.
1, 2018, a state of Hawaii website said.
How far off pace is that from a living wage? According to data from the Massachusetts Institute of Technology, a resident of Honolulu would need to earn $14.66 per hour to keep up with cost of living. Goods and services are high in the islands because of the need to ship nearly everything in, USA Today said.
Making the financial disparity even more challenging, the median home price for Honolulu is $669,000,
according to Forbes magazine, which said the median income was $73,725 annually. The cost of living in Honolulu was 49.4 percent above the national cost of living.
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Minimum wage marks the lowest pay or compensation an employee in a certain state or municipality can receive by law, with a few exceptions. Living wage calculates what funds are needed for everyday needs, based on a number of factors including marriage, children, debt, cost-of-living and other expenses.
MIT said one person would need to earn $30,484 annually before taxes to meet a living wage criteria for Honolulu.
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