Ireland is scrapping minimum wage in favour of taking steps toward a living wage.

The two may seem similar, but there are some key differences, with a minimum wage being the lowest legal amount a company can pay a full-time worker, while a living wage is what a full-time worker needs to be paid to live above the poverty line.

Ireland’s format will see a percentage of the median wage used to determine the living wage.

Local living wage advocate Dan Meades says the most recent calculation for a living wage in Newfoundland and Labrador lands at $18.85—about five dollars more than the upcoming increased minimum wage of $13.80.

He says that ends up being about $11,000 more a year that has to be made up by government through food banks and social programs.