At a time where we're seeing record inflation, and the cost of food reaching new heights, paying a living wage has never been more important.
And while the cost for an employer to pay a living wage in Ontario is going up, advocates say doing so is a cost effective investment for employers, on top of taking care of the well being of workers and their families trying to make ends meet.
"For employers that are considering the costs associated with paying a living wage, it's important to know that existing living wage employers, including small businesses owners, report experiencing reduced recruitment and training costs, better morale, increased productivity and less fatigue," Dominica McPherson, the director of the Guelph and Wellington Task Force for Poverty Elimination, told GuelphToday.
The Ontario Living Wage Network said Guelph and Wellington saw a 10.2 per cent increase year-over-year, to a livable wage rate of $19.95 an hour.
The network has also moved to a system with 10 regions in the province, combining Guelph and Wellington with Waterloo and Dufferin. Beforehand, there was a mix of 51 municipal, county and regional boundaries it used to define a living wage area.
It factors in the cost of basic goods and services for three types of families: two parents aged 35 with two kids, a single parent with one child and a single adult.
Government transfers, like the Canada Child Benefit, are included in the calculation, as are the costs of food, shelter, clothing and footwear, annual transportation costs, adult education, medical expenses, communications, child care and more.
Of note, the Dufferin Waterloo Guelph-Wellington region's $19.95 per hour calculation is the third most among the 10 regions. The livable wage rate in Grey Bruce Perth Huron Simcoe region is up to $20.70. The Greater Toronto Area is the highest at $23.15.
McPherson said while the calculation may not reflect the unique needs of every person living in the community, the living wage rate gets us closer to the reality of costs facing locals than the provincially-set minimum wage.
"Even with the recent increase in the minimum wage to $15.50 per hour, a person working full-time in Guelph or Wellington is short by at least $155.75 per week to make ends meet, when compared to the living wage rate," she said.
It's not known just how many people are working under the livable wage rate locally, but McPherson said the majority of minimum wage workers are working for large corporations.
She said many challenges lie ahead, calling it a critical time to invest in income-based solutions for people living with low incomes.
"When we consider how it's getting harder and harder for workers, and people in our community who are unable to work to make ends meet, it's critical that we look at paying living wages and investing in income-based supports like a basic income, adequate social assistance rates and affordable housing," McPherson said.
"Investing in these kinds of income-based solutions is not only an investment in the health and well being of individuals and families living with low income, but an investment in our local economy and broader community's well being.
"When people have more money in their pockets, they spend it in the local economy on meeting their needs and improving the quality of their life."
