Victoria’s living wage nearly $10 more an hour than current minimum wage

Victoria’s living wage has increased by 5% since last year, jumping to $26.78 from $25.40, according to a report from Living Wage BC. The living wage calculates how much each of two parents working full-time must earn hourly to support a family of four. Minimum wage in BC rose to $17.40 this year, matching the consumer price index. For locals on disability pay—$15 an hour—payments would need to double to meet Victoria’s cost of living.

The jump is not as dramatic as in previous years—in 2022, the living wage in Victoria rose by 20%—but, while inflation has eased from record highs, essential costs like rent and food continue to rise faster than general inflation. Victoria’s living wave has risen by nearly $6.50 from the pre-pandemic estimate of $19.39 in 2019.

Rent is the key culprit for this year’s rise with 22 of 25 BC communities measured. Victoria had the third-highest rent in Canada in 2023, with the average two-bedroom purpose-built rental unit costing $1,839 a month—almost $500 more than the national average, according to a report by Canada Mortgage and Housing Corporation (CMHC). The report states that a person making minimum wage in Victoria must spend 40% of their monthly income on rent.

While the province and feds have eased some of the cost of living, through affordable child-care initiatives, elimination of Medical Services Plan (MSP) premiums, and the gradual roll-out of the Canadian Dentalcare Plan, the cost of shelter continues to skyrocket.

“No government efforts to address the cost of living crisis can succeed without moving the dial on housing affordability,” Living Wage BC’s report states.

Food is the second-highest cost for families. The average cost for a household of four is $1,222 per month, based on the cost of purchasing Health Canada’s National Nutritious Food Basket, a measurement used to track the cost of a healthy diet. The basket does not consider special dietary needs, cultural or other food preferences and take-out or restaurant meals.

The living wage is defined as a moderate quality of life—according to the Community Social Planning Council of Greater Victoria, while it is more than a survival wage, “it is not an affluent wage. It is lower than what is needed to obtain much of what is considered normal in our community.”

Victoria is one of 10 municipalities in BC, as of October, to commit to paying its municipal staff the living wage.

Living Wage BC is calling for coordinated efforts from the provincial and federal government to:

• Raise the minimum wage to $20 per hour, benefiting more than 400K people working in every region of the province
• Establish a living wage policy for both its direct employees and contractors, and encourage all public bodies to follow suit (including universities, hospitals, and school boards)
• Offer more-generous government transfers to give money directly to low- and middle-income households (a similar approach to existing child benefits for families with children)
• Do more to moderate the increase in the living wage amid a sharply rising cost of living
• Offer accessible public services and infrastructure to reduce out-of-pocket costs for families, including affordable housing, universal access to low-cost child care, free transit for youth 18 and under, and an expansion of publicly funded pharmacare and mental-health services.