United Way Announces New Living Wage

By Bob Montgomery

This week is Living Wage Week in Ontario and the United Way Perth Huron has just announced its Living Wage for this year.

Director of Social Research & Planning Kristin Crane says the new living wage is $22.75 an hour, up from $20.70 last year. So an increase of just under ten per cent. Crane adds, they don't get the data that they need to create the number right away. They usually have to go by the data from the second half of the previous year and the first half of the current year, so it's a reflection in the inflation late in 2022 and the first half of 2023 and there were significant spikes in costs for most things during that period.

Crane says to arrive at a Living Wage they calculate costs in the Huron Perth region and then do a weighted average of three different families, a single individual, a single mother with a seven year-old child and then two parents with a three-year-old and a seven-year old. They then calculate what a person needs to make on a 35-hour week. Everyday expenses in the calculation included food, housing, utilities, clothing, childcare and transportation.

Crane says they understand it’s challenging for businesses to think about increasing their expenses, particularly at a time when so many organizations are feeling the pressure of higher pricing themselves. But she says they continue to hear from certified living wage employers that paying a living wage helps in many ways over time, from reducing turnover and increasing productivity to boosting morale. So while paying a living wage may seem daunting, organizations do benefit in the long run.

For more information about Perth-Huron’s living wage, visit perthhuron.unitedway.ca.