Calgary’s 2023 Living Wage: This is How Much You Need to Earn For a Modest Living

Vibrant Communities Calgary says residents need to make $23.70 per hour to maintain a modest standard of living in the city.

 

This is up from $22.40, the 2022 requirement.

A Living Wage, a “proxy for the cost of living in a community,” is not the same as minimum wage as it is calculated using average expenses, taxes, and government benefits for a given household using local costs. It also considers costs like health insurance,  child care, education and savings.

Per the website, the methodology for calculating Calgary’s living wage assumes that all adults in the household are working 35 hours per week full-time for 52 weeks.

The Alberta Living Wage is calculated using a weighted average of the income needs of three household types: a two-parent family with two young children (32.6% weightage), a lone parent with one young child (7.7%), and a single individual with no children (59.6%). The calculation also assumes that all adults in the household are working full-time hours.

As per Vibrant Communities Calgary’s calculations:

• a family of four must make $22.17 per hour;
• a single parent with one child $31.07 per hour;
• and a single individual $24.15 per hour to live modestly in Calgary.

The average weighted 2023 living wage for Calgary is $23.70 per hour.

Single parents receive a Federal Grocery Rebate of $130.  In Alberta, the Affordability payments provided $1,200 for a family of four and $600 for families with one child, while the Alberta Fuel Tax Relief Program helped families save approximately $124 on gasoline expenses. Vibrant Communities Calgary says without these temporary benefits, the living wage in Calgary would have stood at $24.60.

The calculations indicate that a family consisting of four necessitates an annual income of $112,321 for a modest standard of living. A single individual requires $38,719 annually, and a single adult with a child needs $70,661 yearly.

This is 5% higher than Calgary’s 2022 Living Wage and 58% higher than Alberta’s minimum wage of $15 per hour ($13.00 per hour for students under the age of 18).

• 2023 Alberta Living Wage in 16 Cities & Towns

 

Vibrant Communities Calgary says contrary to the misconception that low-wage workers are primarily young and living with parents, 85% of those earning under $20 per hour are adults, with 36% having children.

Rising shelter costs, especially a $2,846 increase, played a significant role in this year’s living wage escalation. Government policies, including benefits like the Canada Child Benefit and temporary affordability payments, kept living wages lower than expected, but wages have not kept pace with the rising cost of living, particularly in food and shelter. This growing wage-cost disparity has implications for low-income earners and calls for affordable housing solutions in Calgary.

 

Calgary’s 2021 Living Wage

More Information is available here.