Living Wage

A living wage is an important income policy lever to help get Niagara families out of severe financial stress by lifting them out of poverty and providing a modest level of economic security and social inclusion.

A living wage is not the same as the minimum wage, which is the legal minimum all employers must pay. The living wage sets a higher test – it reflects what earners in a family need to be paid based on the actual costs of living and being included in a specific community. The living wage is calculated as an evidence-based hourly rate at which a household can meet its basic needs, once government transfers have been added to the family’s income and deductions have been subtracted. Included in this calculation are food, shelter, clothing, transportation, communication, child care, private health insurance for prescription drugs and dental coverage, continuing education for adults to upgrade skills, and items that allow for fuller participation in society, such as birthday gifts, family leisure outings and local recreation.