A Living Wage is different from the minimum wage. Participating is not mandatory, it is a voluntary program employers may implement in their workplaces. A Living Wage reflects what earners need to make in order that their household can meet its basic needs. It ensures families are not under severe financial stress, promotes social inclusion, and helps families achieve a basic level of economic security.
A Living Wage is based on the actual costs of a conservative basket of goods and services, and is community-specific. In this instance, wherever possible, costs from the London community were used in the calculation.
A Living Wage is calculated as an hourly rate, and it takes into account government transfers and deductions. For more information see Living Wage Canada.
For employers, a Living Wage can lead to improved productivity, increased employee loyalty, and decreased costs associated with absenteeism, training, recruitment and employee theft.
For the individual, a Living Wage can lead to improved health, better quality of life, improved morale at work, and a rise out of poverty.
A Living Wage can lead local residents to be healthier, happier and more contributing members of society, prompting them to take a more active role in their communities.
When determining a Living Wage for a given community, it is necessary to consider a wide range of local factors and conditions that can affect how earners are able to meet their basic needs. A Living Wage is specific to the community for which it is calculated.
The methodology used to guide the research for a Living Wage in London, Ontario was based on the Canadian Living Wage Framework; the calculations themselves were made using the Canadian Centre for Policy Alternatives’ (CCPA) 2014 Living Wage Calculator.
A wide range of factors that impact the costs facing wage earners and their families, were considered for the calculation, including:
housing and utilities;
clothing and footwear;
child care and school-associated fees;
leisure time, including sports fees, entertainment and outings;
health, dental and vision care;
and, other personal costs.
In 2019, once they reviewed the data, researchers were able to determine that the Living Wage for London, Ontario is $16.20 per hour; however, where the employer provides an employee medical insurance plan, the Living Wage could be around $1.00 per hour lower.