The Ontario Living Wage Network has released the updated living wage rates for 2024 in 10 major regions of the province.
These rates highlight that many workers in Ontario continue to earn less than the living wage, making it challenging to afford basic expenses, particularly in higher-cost areas like the Greater Toronto Area.
The living wage represents the amount of money required to meet essential needs such as food, housing, and transportation without relying on government assistance.
According to Immigration News Canada (INC), these new figures expose a growing gap between what workers need to earn to cover basic living expenses and the provincial minimum wage, which has remained well below the necessary threshold in many areas; further highlighting the financial struggles many workers face in Ontario.
These updated rates also reflect the reality that many workers in Ontario still earn far less than the living wage, making it difficult to cover the basic costs of life, especially in higher-cost areas like the Greater Toronto Area.
Living wage rates in Ontario for 2024
INC informs that in 2024, the highest living wage in Ontario is found in the Greater Toronto Area (GTA), where workers need to earn $26.00 per hour to meet basic expenses. This is a significant 3.8% increase from the 2023 rate of $25.05.
Other regions have also seen increases. For instance, the Southwest region experienced a notable rise of 6.4%, with the new living wage set at $19.85 per hour, up from $18.65 in 2023. The East region saw the largest percentage increase, with a 5.1% rise from $20.60 to $21.65.
Below, INC informs on the breakdown of the new living wage rates for Ontario’s major regions in 2024:
- Greater Toronto Area: $26.00 (up from $25.05 in 2023)
- Ottawa: $22.80 (up from $21.95 in 2023)
- Southwest: $19.85 (up from $18.65 in 2023)
- London Elgin Oxford: $19.50 (up from $18.85 in 2023)
- North: $20.30 (up from $19.80 in 2023)
- Hamilton: $21.30 (up from $20.80 in 2023)
These figures illustrate the growing financial pressures on workers, especially in larger cities and urban centers where the cost of living is rising faster than wages.
Ontario’s minimum wage and the growing disparity
While the living wage in Ontario continues to increase, the provincial minimum wage lags far behind. As of October 1st, 2024, the minimum wage in Ontario was raised to $17.20 per hour, which is still significantly lower than the living wage, particularly in high-cost regions like the GTA.
The minimum wage increase in October was a modest adjustment from the previous rate of $16.55 per hour. However, the minimum wage continues to fall short of providing workers with enough income to cover basic expenses without additional government support.
Why the living wage is higher than the minimum wage
The living wage, as informed, is designed to cover actual living expenses in a specific region, including housing, transportation, childcare, and groceries. In contrast, the minimum wage is set by the government as a baseline and often does not account for the higher costs of living.
The living wage is a better indicator of what a worker truly needs to live above the poverty line in Ontario. It reflects real costs, whereas the minimum wage is just a starting point, not enough for many workers in high-cost areas.
Impact on workers and employers
The gap between the minimum wage and the living wage places additional pressure on workers who rely on lower wages to support themselves and their families. For those earning the minimum wage, INC reports that the government offers various forms of financial support, including housing assistance and child benefits, but many still struggle to make ends meet.
- Further reports reveal that employers are only required to pay the minimum wage, not the living wage, although some businesses are choosing to pay more in an effort to attract and retain employees. Companies in regions with higher living costs are particularly challenged by the growing disparity.
- The gap between minimum wage and living wage is expected to remain a topic of concern as the cost of living continues to rise in key regions across the province.
For more information on the updated rates or to learn more about Ontario’s wage policies, visit the Ontario Living Wage Network website or check out updates from Immigration News Canada (INC).
