The essential income required for a modest standard of living in Calgary has seen a significant increase, according to a recent analysis. A report released by Vibrant Communities Calgary (VCC) in collaboration with the Alberta Living Wage Network (ALWN) states that Calgarians now need to earn $26.50 per hour to cover their basic needs.
What a Living Wage Means for Calgary Workers
Dani DeBoice, the Executive Director of VCC, emphasized the critical nature of this annual calculation. She explained that the living wage reflects the real costs faced by families in the community, encompassing not just basic necessities but also allowing for modest savings and opportunities for personal development and education.
The new rate of $26.50 places Calgary as the municipality with the third-highest living wage out of the 21 participating regions in Alberta, trailing only Jasper and Airdrie. This figure starkly highlights the growing affordability gap, as it is a staggering 77 percent higher than Alberta's minimum wage, which has remained frozen at $15.00 per hour since 2018.
For the city's lowest-paid workers, bridging this gap would be transformative. Paying a living wage would put an extra $400 into their pockets every week. DeBoice illustrated the real-world impact, noting this could mean the difference between being able to confidently purchase groceries or facing anxiety about affording basic needs.
Driving Forces Behind the Increase
While housing costs in the city have begun to stabilize, the living wage still rose by $2.00 compared to the previous year. This jump is primarily attributed to escalating expenses in other critical areas.
DeBoice identified transportation, child care, and food costs as the main drivers of the increase. She pointed out that the rising cost of food is a pressure felt city-wide. "We're all feeling that pinch," DeBoice stated, indicating that the struggle is not confined to those with the lowest incomes.
Broader Impacts and a Path Forward
The living wage calculations for Alberta are based on the reputable Canadian Living Wage Framework. The goal of producing this data is to inform public discourse, influence policy, and guide employers in their compensation decisions.
Advocates argue that the benefits of a living wage extend far beyond the individual. When people earn enough to meet their basic needs, they experience better health, higher productivity, and can contribute more significantly to their communities and the local economy.
In a positive step, VCC and ALWN partnered with Be Local on a pilot project this year. The initiative successfully supported four cleaning companies in transitioning their payrolls to provide a living wage for all employees, demonstrating that such a change is feasible for businesses.
