The living wage is defined as the hourly pay an individual must receive in order to earn enough to completely cover their household's basic living expenses such as food, clothing, rental housing, transportation, childcare, and a small amount of savings for the event of illness or an emergency. The living wage figure varies based on the specific markets of a region, but it consistently encourages employers to pay significantly above the minimum wage to ensure the financial security of their employees and the wellbeing of their business(es).
 

The living wage calculation is a conservative, reasonable amount—predicated upon rentals, used vehicles, and other affordable options—intended to compensate for Canada’s stagnant wages, which have failed to rise to scale with the price of consumer products and the cost of living, which is once again evident with the calculation for 2025. Additionally, the living wage practice has been shown to be an effective business model, and as such, has already engendered significant support from communities and business across British Columbia. 

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In previous years, the living wage in British Columbia is calculated for a family consisting of two adults, both aged 31-50, and two children, one aged seven, the other aged four—the most common family unit in BC. However, the 2025 calculation instead uses a weighted average of three household types: a family of four, a single-parent family, and a single adult. Because single adults tend to have lower overall costs than families with children, this shift results in a slightly lower combined living wage figure for Cowichan than the family-of-four model alone would have shown.

This methodological change helps better represent the diversity of workers in our region, but it also means the very small increase this year should not be read as a sign that affordability pressures have eased. Rising rents and food costs continue to put significant strain on households across all family types.​

Despite the provincially mandated minimum wage ($17.85 per hour) now being tied directly to inflation, the gap between the minimum wage and living wage continues to widen, and life is continuing on a trend toward becoming increasingly unaffordable for many working people in our region and others across the Province. This highlights the need for local employers to carefully consider whether the people who keep our local business economy running are compensated appropriately.