By Harinder Mahil

The 2024 living wage update, released by the Centre for Policy Alternatives (CCPA) on November 20, 2024, shows that 2024 living wage for Metro Vancouver has risen to $27.05 per hour, a 5.3% increase for last year. This increase highlights the region’s deepening affordability crisis fuelled by high housing costs.

Living wages are also going up across British Columbia according to the CCPA’s report.

The living wage is the hourly rate that each of two parents working full-time must earn to support a family of four in Metro Vancouver. It ensures a family can afford necessities, support the healthy development of their children, escape severe financial stress and participate in the social, civic and cultural lives of their communities.

While inflation has eased from record highs, essential costs like rent and food continue to rise faster than general inflation.

The financial relief provided by the provincial and federal government measures, such as affordable childcare programs and increases in income-tested benefits, was intended to help offset rising costs, but is outpaced by the rising cost of rent.

Although minimum wage has increased in British Columbia to $17.40 per hour on June 1, 2024, it is not enough to pay for rent, food and other necessities in Metro Vancouver. 

After housing, food is the second most expensive item in the living wage family budget, increasing by 3.3% since last year. The third most expensive item is child care expenses, which rose 1.9% during last year.

The CCPA’s report shows that a large gap exists between the 2024 Metro Vancouver living wage and BC’s current minimum wage of $17.40 per hour.

The Metro Vancouver living wage has always been higher than BC’s minimum wage, but the gap narrowed between 2018 and 2021 because of policy changes such as substantial minimum wage increases, the elimination of Medical Services Plan (MSP) premiums, introduction of the BC Family Benefit and significant new federal and provincial child care investments.

However, since 2021, soaring costs of living—especially for housing—have outpaced these affordability improvements. The gap has widened again, leaving many families earning less than it takes to get by.

People who work for low wages face impossible choices—buy groceries or heat the house, keep up with bills or pay the rent on time. The result can be spiraling debt, constant anxiety and long-term health problems.

It is clear from the CCPA’s report that coordinated government efforts at all levels are needed to both lift wages and lower the cost pressures people face so that all workers can thrive.

The living wage movement calls on employers to pay wages sufficient to support families.

In addition to higher minimum wages, BC workers need pay equity legislation, stronger protections from wage theft and other workplace rights violations and meaningful access to collective bargaining so they can exercise the right to come together to negotiate better wages and benefits if they so choose.

The report recommends that the provincial government should establish a living wage policy for both its direct employees and contractors and encourage all public bodies to follow suit (e.g., universities, hospitals, school boards).

I urge all levels of governments to pay attention to the report and seriously consider its recommendations. It should also be seriously considered by business and community organizations to tackle the systemic factors—like inadequate wages, soaring rents and insufficient public supports—that play a role in the affordability crisis.

Harinder Mahil is a human rights activist and is secretary of the Dr. Hari Sharma Foundation.