Ontario's living wage just went up — here's why that's important

More than a decade ago, a small group of advocates, business owners, union members, and community leaders gathered around a table in Hamilton to ask a simple question: What does it really cost to live and work in our community?

They recognized that the minimum wage no longer met its purpose: to protect workers from poverty. Too many people were doing everything society asked of them: working full-time, supporting families and yet still falling behind. The familiar refrain from politicians and pundits to “just get a job” had begun to sound like satire as the ranks of the working poor grew.

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The response in Hamilton became the foundation of one of Ontario’s first local living wage calculations, an hourly rate based on what it really costs to cover basic needs, raise kids and participate in community life.

On Nov. 10, as new 2025 living wage rates are released in Canada’s most populous province, that same question feels more urgent than ever. Costs have surged, paycheques haven’t kept up and more working families are finding themselves one bill away from crisis.

The rates have gone up an average of 5.3 percent across the province from 2024. While the exact numbers vary by region ($27.20 per hour in Toronto, $23.40 in Ottawa, $21.50 in Southwest Ontario and $21.10 in Northern Ontario), these differences reflect local costs for housing, groceries, and transportation. But they tell a consistent story: the provincially mandated minimum wage of $17.60 per hour still falls many dollars short of a living wage, leaving too many workers in poverty.

A recent analysis by the Canadian Centre for Policy Alternatives underscores why these updates matter. The report Barely Hanging On found that more than one million workers in Ontario’s urban areas earn less than their region’s living wage. Women and racialized workers are disproportionately represented among Ontario’s working poor, a reminder that even full-time work no longer guarantees financial stability.

But across Canada, the living wage is gaining momentum. New Westminster, B.C., became the country’s first Living Wage Municipality in 2010, formally committing to pay all civic employees and contractors a living wage. That step inspired others to follow.

In Ontario, Hamilton and Waterloo Region soon joined the movement and began calculating local rates. The model spread quickly through the creation of the Ontario Living Wage Network, which now certifies employers who voluntarily pay direct and contracted staff a living wage.

Now, more than 800 workplaces, from breweries and credit unions to social-service agencies and small cafés, have taken that step. Many employers report benefits that go far beyond reputation: lower staff turnover, higher morale, and stronger loyalty among customers who value businesses that treat employees with respect.

For many employers, the living wage offers a framework for responsible business. Rather than racing to the bottom on wages, it sets a shared expectation that work should sustain people, not exploit them. In an economy increasingly defined by precarity, gig work, automation and now artificial intelligence, ensuring that full-time jobs pay the bills is a quietly radical act.

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The living wage is good for workers, business and communities. When workers earn enough to meet basic needs and participate in community life, everyone benefits. Employees are more productive and loyal; businesses save on recruitment and training; and communities gain from the local spending that drives growth and creates jobs.

Even municipalities are recognizing the case. The City of Hamilton’s economic development department now uses the living wage as a standard when encouraging new employers to invest locally. They understand what research shows: when workers earn more, businesses thrive and communities become healthier.

It’s an approach that balances ethics and economics, a reminder that fair pay isn’t just social policy, it’s smart local development.

The living wage movement continues to grow. Some municipalities are embedding living wage principles into procurement policies. Unions and worker co-ops are using the data to strengthen collective bargaining. Non-profits are including living wage commitments in grant applications and job postings.

And a growing number of small businesses, often led by younger entrepreneurs, see paying a living wage as part of their brand identity. They view fair pay as an investment in people and community, not an expense to be minimized.

Faith organizations, including Silver Spire United in St. Catharines, are also stepping up to become certified living wage employers, ensuring that custodians, musicians and administrative staff are paid fairly. In doing so, they remind us that decent work is a shared responsibility.

The living wage movement began with a moral question. It endures because it offers a practical answer. The challenge and opportunity remain clear: build workplaces, communities and policies that ensure no one working full-time lives in poverty.

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Tom Cooper is the director of the Hamilton Roundtable for Poverty Reduction and one of the co-founders of the Ontario Living Wage Network. To learn more about the Living Wage movement and certification process, visit OntarioLivingWage.ca.