Ontario's new living wage numbers are out and the network says minimum wage still doesn't cut it

Inflation may be cooling, but it still costs more to live in Ontario than it did last year largely because of rent, says a network pushing for higher wages. 

In Hamilton, you need to earn at least $21.30 per hour to afford a reasonable standard of living, the Ontario Living Wage Network (OLWN) has calculated. That's what the organization has set as the new living wage in the city.

That's 2.4 per cent more than last year, when the living wage increased almost 11 per cent compared to 2022.

A living wage is the hourly pay workers need to make ends meet and participate in their community, the network says. It differs from Ontario's minimum wage, which went up on Oct. 1 to $17.20 per hour. 

Living wage rates across the province have increased 3.4 per cent over last year on average, the OLWN said in a news release on Nov. 14. 

In the Brant Haldimand Norfolk Niagara region, the new living wage is $20.90, said the OLWN. In the Greater Toronto Area, which includes Burlington, the rate is now $26, which is the highest in the province.

The biggest jump occurred in southwestern Ontario, which includes Windsor and Sarnia. There, the living wage rose to $19.85, which is 6.4 per cent more than last year, said OLWN.

Craig Pickthorne, network spokesperson, told CBC Hamilton that the minimum wage does not match the living wage anywhere in Ontario.

"[The living wage is] what we consider to be the absolute floor," Pickthorne said, adding that employers should view it as a starting point. 

"There's no place in the province that you can work a full-time job [at minimum wage] ... [and] be able to make ends meet," he said. "You're going to have to work extra jobs."

How the living wage is calculated

Unlike minimum wage, which is set by the province, the living wage is created using calculations by the OLWN based on the after-tax amount that people in three types of households would need for a basket of goods and services if working 35 hours per week. 

The three types of households the network considers are two parents aged 35 with two children aged seven and three, a single parent with a seven-year-old, and a single adult. 

The basket includes rent, food, child care, transportation, medical, savings for some time off work, and an emergency fund. It does not include repaying debt or saving to buy a home.

The wage calculation takes into account social assistance such as the Canada Child Benefit and is based on a weighted average of the three family types, using census data.

In Hamilton, the average family of four spends $26,262 a year on shelter, the 2024 OLWN report found. 

In Brant Haldimand Norfolk Niagara, housing costs $20,167 and in the GTA, it's $32,007. 

Since the OLWN was founded in 2017, it's certified about 870 workplaces as paying their local living wage.

The network is funded by fees from certified employers and supporter organizations. Pickthorne said employers have until May to begin paying the new rates, which the network shares with them ahead of time. 

Local non-profit to pay new living wage

Barrington Hector, executive director at the Neighbour to Neighbour Centre, says paying his workers the living wage is "the right thing," and pays off financially. 

The non-profit focuses on food security and education on Hamilton's Mountain and has about 30 staff, who all receive at least a living wage, Hector said. The centre got certified this month, he said, and will pay the new rate.

Hector started in his role last year and said becoming a living wage employer was a top priority. Most roles were already there, he said, but summer students saw about a $4-per-hour raise, and the non-profit renegotiated contracts for third-party contractors they employ to ensure those workers also get a living wage.

Being a living wage employer improves the company's reputation and has made for a "happier, healthier team," with less turnover, said Hector. In his estimation, there's been a return on investment of two to three times.

Hector said there's a misconception that minimum-wage earners are mostly young people who don't financially support themselves or others. Many do, he said, adding that he grew up in an "income insecure household," and understands how hard it can be to get by.  

The centre's food bank has seen a 40-per-cent increase in usage in the last two years, he said, going from 1,100 visitors per month to 1,700. More and more of those users have jobs, Hector said, and some have more than one job. 

"If we're paying folks a living wage, they're able to meet their basic needs," he said. "It we're not able to make those basics for folks, we're going to see this continuation of folks coming to food banks."