Living Wage Canada Releases New Rates, Annual Calculations

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It’s one thing to have a job, it’s another thing to have a job that pays you enough to participate in society. Canada’s minimum wage, like most places, doesn’t match the reality of what a person needs to earn to make a living (thus people say minimum wage deserves minimum effort). Despite this unfortunate starting point, Living Wage Canada has found a way to streamline for both employers and employees what to expect an hourly minimum rate should be. As a result, the organization makes it easier for employers to be a certified living wage employer and will make it simpler for workers to know what to ask for.

The living wage movement in Canada stemmed from conversations around child poverty in the early 2010s. One major contribution to child poverty is parents who are working but still not able to make ends meet. Because of this focus on children the living wage was originally calculated for a family of four with two working parents. At the time, testing showed that the living wage rate for single parents with one child and single adults were fairly close to that of the reference family of four. However, over time, the living wage rates for these different household types have grown. The introduction of the Canada Child Benefit in 2016 by the federal government lowered living wage rates across the country. In 2019, the provincial government in Ontario introduced the CARE credit, which offers additional support to households with children.

Read more (PDF).

Thanks to Delaney!

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