Calculated hourly rate gives workers extra money to pay for essential items.
With many people struggling to make ends meet, even getting a second job to pay the bills, some employers are embracing a new tactic: a living wage.
It’s a calculated hourly rate — above minimum wage — paid to employees, giving them extra money to pay for essential items.
HOW IS A LIVING WAGE CALCULATED?
A living wage is calculated using housing and transportation costs, along with the cost of groceries and daycare.
“We also look at other things that are essential too, like local internet access, a cellphone plan,” Ontario Living Wage Network communication co-ordinator Craig Pickthorne said.
And any government taxes or transfers are also applied.
The financial experts then look at what someone must earn — working 35 hours a week — to afford to live.
IS THERE ONE RATE ACROSS THE PROVINCE?
Housing, gas and grocery costs vary, so the Ontario Living Wage Network has created 10 zones to calculate its living wage rate.
The latest list was released in November, 2022, with Toronto and Peel Region at the top, at $23.15 an hour.https://2acee83be59a37b4ba9c6486363b9341.safeframe.googlesyndication.com/safeframe/1-0-40/html/container.html
WHERE DID THIS IDEA COME FROM?
The concept came to Canada from Britain in 2007 as a way to address child poverty, Pickthorne said, because parents weren’t making enough to care for their children.
The Ontario Living Wage Network officially launched here in 2015, and there are now more than 683 certified companies on the list.
WHAT’S THE COST AND BENEFIT TO EMPLOYERS?
Employers who enrol pay an annual fee for certification, and go through an application process to make sure they are in compliance.
“We have a queue right now because there’s so much interest,” Pickthorne said, adding there’s a wide range of jobs included.
The employer signs a legal agreement, and receives promotional material to spread the word. As the living wage rates are adjusted each year, certified employers have six months to catch up to the new rate to remain in the good books.
And although it might cost more to their bottom line, Pickthorne said the reward is worth it.
“Our employers report recruitment costs go down, it’s easier to get better candidates,” he said. “Almost all say recruitment is better, turnover is lower and people aren’t holding down multiple jobs, so they are more productive and there’s less fatigue.”
To see employers offering living wages in your area, or for details about enrolling, visit livingwage.ca.
Janis Ramsay – Simcoe.com – Monday, February 13, 2023