A recent report highlights that the minimum wage in Ontario, despite its recent increase, remains far below what’s needed for a comfortable life in the Greater Toronto Area (GTA).
In October, Ontario’s minimum wage rose to $17.20 per hour, up 3.9% from $16.55. However, the Ontario Living Wage Network (OLWN) reports that a “living wage” in the GTA is $26 per hour, a figure $8.80 higher than the new minimum wage. This is an increase from last year’s living wage rate of $25.05 per hour for the region.
What is a Living Wage?
The OLWN defines a living wage as the pre-tax income required to cover essential expenses, such as food, housing, and transportation. Their calculations are based on three household types:
Two parents (both aged 35) with two children (ages 3 and 7).
A single parent with one 7-year-old child.
A single adult.
The report emphasizes that between 2018 and 2022, basic living costs surged by over 18%, surpassing the 13.4% rise in general inflation. Major contributors to the rising living wage include increased rental rates, higher food prices, and elevated fuel costs.
While inflation has stabilized this year, living wage rates for 2024 have still risen by an average of 3.4% across Ontario.
Regional Comparisons
The GTA remains the most expensive region in Ontario, with a $26 hourly living wage. The lowest rate is in the London-Elgin-Oxford region, where the living wage is $19.50 per hour, up from $18.85 in 2023.
Here are the 2024 living wage rates across Ontario:
GTA: $26/hour
Grey Bruce Perth Huron Simcoe: $23.05/hour
Ottawa: $22.80/hour
East Region: $21.65/hour
Dufferin Guelph Wellington Waterloo Region: $21.30/hour
Hamilton: $21.30/hour
Brant Haldimand Norfolk Niagara Region: $20.90/hour
North Region: $20.30/hour
Southwest Region: $19.85/hour
London-Elgin-Oxford Region: $19.50/hour
Broader Concerns
The OLWN’s findings align with broader concerns about Toronto’s cost-of-living crisis. In 2023, the Canadian Centre for Policy Alternatives reported that the “rental wage” — the hourly income required to afford housing while spending no more than 30% of gross income on rent — was $33.62 for a one-bedroom apartment and $40.03 for a two-bedroom in Toronto.
Currently, over 640 employers in Ontario are certified as living wage employers, committed to paying local living wage rates within six months of certification.
This data underscores the growing gap between the cost of living and the provincial minimum wage, further highlighting the challenges faced by residents of Toronto and Ontario at large.
(Source: CTV News)