What is a Living Wage?
What Is a Living Wage in BC?
A living wage is the hourly rate a worker needs to earn to cover basic costs like rent, food, transportation, and childcare in their community.
In British Columbia, the living wage reflects the real cost of living, helping workers and families move out of working poverty and into financial stability.
A living wage is the hourly rate a worker must earn to meet their basic expenses and participate fully in their community.
The living wage calculation is currently based on the weighted average of costs, government benefits and taxes for three different household types:
- A family of four with two full-time working parents and two children aged four and seven.
- A single parent with one four-year-old child.
- A single adult living alone.
The living wage varies across BC based on costs in each region.
Why the Living Wage Matters in British Columbia
Across BC, many people are working full-time but still struggle to make ends meet. This is known as working poverty.
- Afford basic necessities without financial stress
- Support their family and well-being
- Participate in community life
- Maintain stability and dignity
For employers, paying a living wage can improve retention, morale, and long-term stability.
How the Living Wage Is Calculated
The living wage is based on real costs in each community. It includes:
- Housing and utilities
- Food
- Transportation
- Childcare
- Healthcare expenses
- Taxes and government transfers
It reflects a modest standard of living and does not include savings or debt repayment.
The living wage does not cover additional expenses such as:
- Debt repayment from credit cards, loans or other interest payments
- Future savings for home ownership, retirement or children’s university education
- Anything beyond minimal recreation, entertainment and holiday costs
- Costs of caring for a disabled, seriously ill or elderly family member
Living Wage Rates in BC
Living wage rates are calculated annually across British Columbia.
See Living Wage Rates in Your Community
Who Pays a Living Wage?
Living wage employers voluntarily commit to paying their staff and contracted workers a living wage. A living wage is an opportunity for employers to do better. A living wage calls on employers to meet a higher standard for their both staff and major contractors, to ensure that wages reflect the true costs of living in a community and that parents can earn what they need to support their families. More than 500 Living Wage Employers across BC agree and have certified with us.
Become a Living Wage Employer
Paying a living wage is one of the most effective ways to support workers and strengthen communities.
What Is a Living Wage Employer?
A Living Wage Employer is someone who pays all direct and contract staff the living wage rate for their region. They recognize that paying a living wage is an investment in the long-term prosperity of the economy.
We all have a role to play in ending poverty.
Paying a living wage
The living wage is a bare-bones calculation that looks at the amount someone needs to earn to meet their expenses. The living wage includes costs like rent and groceries as well as items like extended health care. It does not include debt repayment or savings for future plans.
To calculate the living wage rate, employers take into account their employees’ total wage plus benefits. If employees receive non-mandatory benefits, the living wage rate is reduced. See our benefits calculator for details.
Learn more about becoming a Living Wage Employer.
A better way to pay 
Good for employers
Employers have found that implementing a living wage has increased their employee recruitment and retention. Vancity saw that the most significant impact was the swelling of pride in all staff after implementing a living wage. Staff at Living Wage Employers are proud to contribute to a company that ensures that no one is left behind.
"A living wage supports our organization's mission to promote equality, fairness and social inclusion." - BC Public Interest Advocacy Centre
Good for our community
We all pay for poverty in our communities. We pay in increased use of emergency health services when individuals aren’t able to afford to fill prescriptions. Our education system is stretched when parents aren’t able to support their children’s education because they are working multiple jobs. Investing in a living wage is investing in the health of our communities.
Good for the economy
When low-wage workers see an increase in their wages they spend their money locally. A living wage allows families to participate in the social, civic and cultural lives of their communities. They support local business and participate in community events. We all benefit when we reduce poverty in our communities.