Ontario Living Wage Network has published hourly wages required to maintain a modest standard of living across 10 Living Wage regions in Ontario.
The living wage is defined as “the hourly wage a worker needs to earn to cover their basic expenses and participate in their community.” A living wage varies across communities as the costs of living in a specific community vary.
Living Wage Calculation:
Ontario Living Wage is calculated using a weighted average of the income needs of three household types: two parents aged 35 and two children aged 7 and 3, a single parent (35) with a child aged 7, and a single adult.
Ontario Living Wage Network estimates the living wage by calculating the expenses for each family type in each county or district in Ontario. The county-level data is aggregated to the economic region level and “an additional 4% is added to this total level of expenses as a contingency measure”. They then “find the level of earned income, taxes and transfers that would provide them with the amount of income needed to cover these expenses.”
Finally, the Living Wage is calculated by dividing the earned income by 52 weeks in the year and 35 hours per week (and by 2 for families of four).
Expenses included in the calculation are:
- Food costs from the most recent Nutritious Food Basket (NFB)
- Shelter includes a conservative estimate for rent from the Canadian Mortgage and Housing Corporation (CMHC), hydro, tenant insurance etc.
- Local transportation costs
- Clothing and footwear
- Adult education
- Medical, life, and critical illness insurance
- Internet and cellphone
- Child care
- Other expenses (calculated as 75.4% of the cost of food, clothing and footwear). This is intended to cover toiletries and personal care, furniture, household supplies, laundry, school supplies and fees, bank fees, some reading materials, minimal recreation and entertainment, family outings (for example to museums and cultural events), birthday presents, modest family vacation and some sports and/or art classes for the children.
Living Wage calculation does not include retirement savings, debt repayment, home ownership, savings for children’s education, or anything other than the smallest cushion for emergencies or hard times. Government benefits like the Canada Child Benefit and the Ontario CARE benefit are included in the calculation.
A living wage is not the same as the minimum wage, which is the legal minimum all employers must pay to their employees. Ontario’s minimum wage is $16.55 per hour.
2023 Living Wage in Ontario
2023 Living wage in Ontario varies from $25.05 (highest) per hour in the Greater Toronto Area to $18.65 per hour (lowest) in Southwest Ontario. GTA’s living wage is $1.90 more than that in 2022.
Region | Rate/hr |
---|---|
Greater Toronto Area | $25.05 |
Grey Bruce Perth Huron Simcoe | $22.75 |
Dufferin Waterloo Guelph-Wellington | $20.90 |
Brant Niagara Haldimand Norfolk | $20.35 |
North | $19.80 |
Ottawa | $21.95 |
East | $20.60 |
Hamilton | $20.80 |
Southwest | $18.65 |
London Elgin Oxford | $18.85 |
A detailed report is available here.