The Canadian Living Wage Framework calculates a living wage that
would allow two income earners to support a family of four and assumes
the following scenario:
A healthy family of four with two children
1 child in full-time daycare, 1 in before and after-school care
Full-time hours of employment between two parents (What constitutes full-time hours varies across Canada, but is typically between 35-40 hours. For more information, visit here.)
One parent taking evening courses at a local college to improve employment capacity
Costs of living including transportation, food, rental housing, clothing, childcare, medical expenses and other
Inclusion of tax credits, returns and government benefits; namely child tax benefits
The living wage is the hourly rate of pay at which a household can
meet its expenses once government transfers have been added and
government deductions from wages and government taxes have been
subtracted.
While the methodology accounts for a range of costs, taxes and benefits experienced by a family, it does not account for:
Credit card, loan or other debt/interest payments
Savings for retirement
Owning a home
Savings for children's future education
Anything beyond minimal recreation, entertainment and holidays
Costs of caring for a disabled, seriously ill, or elderly family member
Anything other than the smallest cushion for emergencies or hard times
