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You now need to earn more than $20 per hour to have a reasonable standard of living in Hamilton, the Ontario Living Wage Network (OLWN) says.
The city’s new living wage rate is $20.80, about nine per cent more than 2022’s $19.05, which was almost 11 per cent more than the year prior.
The OLWN released its updated set of wage rates Monday. A living wage is the hourly pay workers need to make ends meet and participate in their community, the network says. It differs from Ontario’s minimum wage, which went up on Oct. 1 to $16.55 per hour.
“Predictably, rent hikes and food inflation are the primary drivers of the increases in our living wage rates this year,” Ted Hildebrandt, a planner with Hamilton’s Social Planning and Research Council, said in a news release.
The living wage calculation varies based on where you live. The new 2023 rate for Brant Niagara Haldimand Norfolk is $20.35.
The lowest in the province is $18.65 per hour in southwestern Ontario, and the highest is $25.05 in the Greater Toronto Area. Ottawa saw the largest increase this year, with the wage rising 12 percent, from $19.60 to $21.95.
How a living wage is calculated
Unlike the Ontario legislated wage, the living wage is created using calculations by the OLWN based on the after-tax amount that people in three types of households — two parents aged 35 with two children aged seven and three, a single parent with a seven-year-old, and a single adult — would need to buy a basket of goods and services if working 35 hours per week.
That basket includes rent, food, child care, transportation, medical expenses, a modest vacation, and an emergency fund.
The wage calculation takes into account social assistance such as the Canada Child Benefit and is based on a weighted average of the three family types, using the 2021 census.
“This is really about a rate that allows someone to participate in our community and not just to get by,” Hildebrandt said.
The OLWN was founded in 2017 and is funded by fees from certified employers and supporter organizations. The organization says it has certified over 600 employers as paying their local living wage.
Fair wage means staff can ‘focus on the work’: employer
One of those living wage employers is Zelus Material Handling, a crane manufacturing company based in Hamilton, where OLWN said the average annual rent for a one-bedroom apartment is now $18,693.
Simon Abdelmalak, assistant general manager at Zelus Material Handling, says paying a living wage is just good business.
“We try to get our employees not to worry about their financials. If they’re getting paid a fair wage for what they’re doing, they will focus on the work, growing the company and doing a good job.”
Abdelmalak says while they haven’t discussed the new rate yet, he expects the company will continue to pay a living wage.
“We don’t go backwards,’ he said.
Tom Cooper, director of Hamilton Roundtable for Poverty Reduction, agreed with the benefits of paying a fair wage.
“When employees can afford a decent standard of living, they experience reduced financial stress, improved mental and physical health, and increased job satisfaction,” he said in a news release. “This can lead to higher employee morale and lower turnover rates, resulting in cost savings for employers.”
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