Halifax’s ‘Living Wage’ Nearly $10 Higher Than Legal Minimum Wage
HALIFAX—Haligonians must make at least $22.05 an hour to meet their basic household needs.
That’s the conclusion from the Canadian Centre For Policy Alternatives’ latest report on the “living wage” in Nova Scotia.
Unlike government-mandated minimum wages, which are the lowest amount companies are legally allowed to pay their employees, the CCPA’s living wage is meant to show how much a household must earn to cover its necessities and still enjoy a “decent quality of life.”
The wage is based on a family of four with two kids, aged two and seven, with both parents working.
It’s calculated to allow the family to avoid “severe financial stress,” while supporting the healthy development of their children and allowing them to participate in their community.
That means considering expenses like childcare, transportation, and clothing. But it also considers costs like a modest emergency fund, part-time education for one parent, and a budget for “social inclusion” activities like childrens’ sports, school supplies, or museum tickets.
The CCPA calculates the living wage for several regions of Nova Scotia each year. This year, in Halifax, the average’s family’s expenses rose by 3 percent.
That means both parents must earn $22.05 an hour to meet their family’s needs. That’s a combined income of just under $75,000. Last year, the CCPA pegged living wage in the city at $21.80 an hour.
According to the CCPA, rising rent and food cost drove most of the increase in Halifax’s living wage. Food costs went up 4 percent compared to last year, while rent rose 5 percent.
Shelter remained the largest expense factored into the living wage, representing 28 percent of the entire budget. Food costs take up 17 percent of the budget, while childcare represents 18 percent.
In its report, the CCPA says employers and governments both need to do more to increase wages in Nova Scotia.
It points to what it calls “mounting evidence” of the benefits of paying a living wage: higher retention rates, fewer sick days, and better work quality.
It also says higher wages help the government spend less on expenses like healthcare.
“For workers, being paid a living wage is a form of preventative health care: a way to address the many health risks associated with low wages. People who work for low wages often struggle to pay for medication and medical supplies,” it says.
The CCPA’s living wage is considerably higher than Nova Scotia’s legal minimum wage, which is $12.95 an hour.
“What does it say about the current minimum wage when even the lowest living wage is far above it?” the CCPA’s report asks.
The federal government’s Canada Emergency Response Benefit (CERB) was meant to give people enough to live on, temporarily, if they lost their jobs to Covid-19.
The CERB was a monthly payout of $2,000, which is equivalent to working 40 hours a week for roughly $15 an hour.
“There are lessons to be learned from this benefit; it was needed to fill the gaps in existing services and programs like Employment Insurance. The minimum level of support provided is instructive,” the report reads.
This week, the provincial NDP party introduced legislation to raise Nova Scotia’s minimum wage to $15 an hour.
While still far below what the CCPA considers a living wage, NDP leader Gary Burrill said it’s a step in the right direction.
However, Premier Tim Houston said this week he thought the NDP’s proposal was too risky.
“I do believe that there is significant risk that a $15 minimum wage could be the tipping point that puts companies out of business, then you have people out of work,” Houston said.
He said Nova Scotians “who get up and go to work” should earn a wage that’s “suitable to afford a life in this province.”
The provincial government is right now examining the formula is uses to calculate minimum wage increases.
Trevor Nichols is Huddle’s associate editor, based in Halifax. Send him your feedback and story ideas: [email protected].