Living wage in Eastern Ontario set at $20.60/Hour

Jeff Green | Nov 08, 2023

On October 1st, the minimum wage for Ontario Workers went up to $16.55 an hour. A group called the Ontario Living Wage Network (OLWN) publishes a Living Wage Calculation for 10 regions across the Province each year in the first week of November.

In the eastern region, which includes the territory from Peterborough to the Quebec border, excluding the City of Ottawa, the 2023 living wage has been calculated at $20.60 per hour. This wage is well lower than the Greater Toronto Area ($25.05) and areas like Grey Bruce Perth Huron Simcoe ($22.75) and Ottawa ($21.95) but is higher than all of Southwestern Ontario, even the City of London ($18.85)

In their documentation, the OLWN says that “A living wage is an effective tool to combat working poverty by making sure that employees can make ends meet where they live. By incorporating expenses that a worker must cover such as shelter, food, transportation and more, our living wages are much closer to reality than a politically set minimum wage.

The living wage calculation also collects expenses related to more than just surviving. A modest vacation is included, as well as opportunities to engage in local culture and community.

The OLWN numbers have jumped significantly since 2021. At that time, Frontenac and Lennox and Addington Counties' were not identified in the list, and were likely lumped in with Kingston which had a living wage of $17.75) Since both Lanark and Hastings Counties were at $18.25 that is likely a more realistic figure for our rural communities at that time.

In 2022, when the Eastern Region was instituted for the first, the living wage across the region was set at $19.05, making this year's jump to $20.60 a large one, reflecting what we have all seen in grocery stores, housing costs, and fuel prices over the past year.

In order to determine whether the regional wage is realistic for an individual or a family in Frontenac, L&A and Lanark, some of the detail provided by the OLWN is worth considering.

The food bill for a family of 4 in Eastern Ontario is calculated at $423 per week for a family of 4 and $82 a week for a single person

Shelter cost is set at $1928 per month for a family of four and $1,432 for a single person.

Transportation costs are set at $1012 a month for a family of four, and $395 a month for an individual.

The calculations take into account the government benefits that low wage earners are eligible for, such as family benefits, GST rebates, and about 10 other federal and provincial programs. On the debit side, it takes CPP, EI and income tax costs into account.

Some of the numbers, such as food and transportation costs, are likley unrealistically low in a rural context. Paying vehicle purchase, repair and fuel costs for $395 per month does not account for replacing tires and timing belts every once in a while, and a single person spending $11.70 a day on food is not necessarily eating well.

But the two main goals of the OLWN are to point to the gap between the official minimum wage and a realistic living wage, and to encourage employers to become Living Wage Employers, who commit to adjusting the wages they pay each year (if necessary) to match the living wage in their region. They have a certification process if employers are interested in becoming “Certified Living Wage Employers”.

There is information available at their website about how they come up with the annual number and the certification process – ontariolivingwage.ca