May 2001
UNIVERSAL LIVING WAGE FORMULA FOR YOUR USE
1. HUD STANDARD: No more than 30% of a person's gross income should be spent on Housing.
2. HUD Fair Market Rent $__________ (Efficiency Apartment or _____ No. of bedrooms), in City/County of (_________________)
3. TOTAL MONTHLY INCOME: $__________ divided by .3 = $______ monthly gross income necessary to afford basic housing.
4. PREMISE: Anyone working 40 hours/week should be able to get housing. 1
5. WORK HOURS: 40 hours/week @ 4.33 weeks/month = 173.33 work hours/month, 173.33 work hours X 12 months = 2080 hours/year.
6. Total Gross Monthly Income of $_______ X 12 months = $_______
$________ divided by 2080 hours/year = $_______ hour -----
NEW HOURLY WAGE in the City/County of (______________)
7. Total Monthly Expenditures:
$_______ Total Gross Monthly Income
$-_______
- ________ Fed. Taxes, Soc Sec., Medicare
-________ Housing Costs
$________ Remaining for: Medical, Clothing
Transportation, Telephone, Food
1 Whether a person works 4 hours per week or 40 hours per week, they should be paid at the full 40 hour rate. A full hours work deserves a full hours wage.
2 Minus $___ for Federal Income Tax, $___ for Social Security, and $___ for Medicare. The Federal Income Tax rate (15%) is based on the monthly deductions outline in the Internal Revenue Circular E, Employers' Tax Guide (Rev. Jan, 2000), Social Security is 6.2% of gross monthly income, and Medicare is 1.45% of gross monthly income (Total equals $___)