A living wage is the hourly amount a household needs to make in order to function, stay healthy, and participate in their community. This includes things like food, housing, clothing, transportation, and more.
More than 600,000 Canadian workers are earning minimum wage – but in no province does the minimum wage align with the living wage.
Living wages vary by community and there’s a methodology behind calculating them. Unlike the minimum wage, living wages thoroughly consider an individual’s income needs and their actual cost of living in an effort to ensure that all working Canadians are compensated fairly.
In this article, we'll review how living wages are calculated, compare living wages among Canada's 10 most popular cities, and clarify the differences between living wages and the minimum wage in Canada.
Key Takeaways
- Living wage refers to the hourly wage a household needs to earn to pay for their expenses and maintain a modest standard of living.
- It’s calculated by using a framework that looks at an area’s cost of living, and a family’s income and government earnings minus any taxes.
- Cost of living varies by community and can range anywhere from $15 to $33.
- Minimum wage is not the same as living wage and the two wages differ by how they’re set and what they’re based on.
What is the living wage in Canada?
When calculated as an average across all provinces and territories, $17.32 is the living wage in Canada (based on 2023 numbers). That’s close to the federal minimum wage of $17.75 per hour.
Living wage is the amount of money a person would have to earn working a 35-hour week to afford the actual cost of living in their area. It is not the same as minimum wage, which is the lowest amount of money that an employer can legally pay someone.
How to calculate living wage
Calculating the living wage starts with defining family expenses based on the area’s cost of living. A livable wage must be greater than or equal to an individual's family expenses.
The Canadian Centre for Policy Alternatives created the following Canadian Living Wage Framework:
Family Expenses = Income (living wage) + Government Benefits - Taxes
The calculation is based on a household consisting of two children plus two adults (each working 35 hours per week).
2025 update: How inflation impacts the living wage
In 2024, inflation decreased slightly and (at the time of writing) hovers around 2.64%. That’s an improvement over the 2021 and 2022 rates, which raised the price of consumer goods to their highest peak in more than 40 years.
Inflation means that the price of everything goes up, including groceries, prescriptions, internet service, and public transit.
Higher inflation rates (like in 2021 and 2022) impact the living wage by driving up the cost of living and raising the amount of income a person needs to afford basic necessities.
Lower inflation rates (like in 2023 and 2024) impact the living wage by lowering the cost of living and the required income for basic living.
Even though inflation was down in 2023 and 2024, the living wage continues to creep up.
How inflation is impacting minimum-wage earners
When inflation is high, minimum-wage earners in Canada may struggle to pay their bills, despite being gainfully employed. As the prices for essentials like food and housing rise, their minimum wages don’t often keep up.
Individuals: More people may spend their savings or get into debt to afford basic needs.
Government: More people may apply for government support programs.
Living wage by Canadian city
Living wages change based on province and city or region. For example, Canmore, Alberta has the highest living wage in the country at $38.80 due to its expensive housing market. On the opposite end of the spectrum sits the agricultural city of Brandon, Manitoba, with a living wage of $15.69.
Housing, food prices, and job opportunities are the primary drivers of the gap. For a better idea of the living wage situation in Canada, let’s look at a list of 10 popular cities in Canada and their living wages in 2023 according to Living Wage Canada:
| City | Living wage 2023 |
|---|---|
| Victoria | $26.78 |
| Vancouver | $27.05 |
| Halifax | $28.30 |
| Toronto | $26.00 |
| Calgary | $24.45 |
| Edmonton | $20.85 |
| Saint John | $24.07 |
| Ottawa | $22.80 |
| Winnipeg | $18.75 |
| Regina | $17.80 |
While it hasn't yet been updated with 2024 numbers, you can find the full list of Canadian cities/regions here: Living Wage Canada - Rates.
Living wage vs. minimum wage Canada
Living wage and minimum wage are not the same.
Living wage:
- Optional for employers
- Determined by worker’s actual cost of living
- Adjusts to rapid inflation to reflect real-time income needs of workers
Minimum wage:
- Government-mandated for employers
- Determined per province based on local economic conditions
- Adjusts only when the government says so
Here's a look at the gap between the minimum wage and living wage in some of the country's biggest cities:
- Minimum wage in Toronto, ON is $17.20 – Toronto's living wage is calculated at $26.00 per hour
- Minimum wage in Vancouver, BC is $17.40 – Vancouver's living wage is calculated at $27.05.
- Minimum wage in Winnipeg, MB is $15.80 – Winnipeg's living wage is calculated at $18.75
- Minimum wage in Halifax, NS is $15.70 – Halifax's living wage is calculated at $28.30 per hour
There's also the federal minimum wage to consider. This applies to industries and employees under federal jurisdiction – think airport staff, Canada Post employees, radio broadcasters, etc.
The current federal minimum wage rate is $17.75 per hour (as of April 1, 2025), which is much closer to the suggested living wage of $17.32 per hour than most of the provincial rates are.
FAQ
What is the definition of living wage?
A living wage is the amount per hour a household needs in order to afford a decent quality of life and participate in their community. This rate is based on the actual cost of living in an individual geographical area.
What is the difference between minimum wage vs. living wage?
The main differences between these wages are that minimum wage is government-mandated, set provincially, and based solely on economics, whereas living wage is based on a worker’s actual cost of living in their individual community.
What is a living wage in Ontario?
The living wage in Ontario depends on the city or region since cost of living varies by community. It ranges from $19.50 in London and Elgin to $26 in the GTA. Ottawa has a living wage of $22.80.
What is the living wage in Toronto?
According to Living Wage Ontario, the living wage in Toronto, Ontario, was $25.05 in 2023 and $26 in 2024 (2025 numbers aren't available quite yet). This is mostly due to the high cost of living in the GTA.
What is the living wage in Vancouver?
According to Living Wage BC, the living wage in Vancouver, British Columbia in 2024 was $27.05. This is a high rate, but Clayoquot Sound has the highest living wage in BC at $27.42.
What is a livable salary in Canada?
The national average for a livable salary in Canada is about $17.32 per hour. This reflects the income needed to cover basic living expenses without relying on public assistance. Actual livable salary varies by geographical location.
What is the average wage in Canada?
For full-time employees in 2025, the average national wage is around $68,830 per year or $5,735 per month. Of course, there are several variables to consider, such as profession, city/province, and career stage.
Is the minimum wage going up to $20 an hour in Ontario?
The government has no plans to raise the Ontario minimum wage to $20, although some activists and politicians have called for this. However, there are plans to raise the rate to $17.60 per hour on October 1, 2025.
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Really insightful comment! Thanks for taking the time to share.