In late November, the 2025 Living Wage for Northumberland County was announced at $22.20 per hour. As we move into the new year, many people are taking a closer look at what this figure actually represents, and how it’s calculated.

The living wage reflects the hourly rate a household needs to earn to cover basic expenses and participate in community life. It is not about luxury or getting ahead, but about stability. Below is an overview of how the living wage is calculated, and the key cost areas that shape it in communities like ours.

What the Living Wage Represents

The living wage is calculated using a consistent methodology across Ontario, designed to reflect the real, everyday costs faced by households. These include food, shelter, transportation, childcare, and other essential expenses that allow people not only to survive, but to live with dignity and stability.

Recent updates to the methodology aim to better reflect:

• Rural and mixed urban–rural communities
• Current rental market pressures
• Changes in transportation patterns
• Expanded access to health and dental coverage

Food Costs

Food costs are based on the Nutritious Food Basket (NFB), collected by local Public Health Units across Ontario. While public conversation often points to rising food prices, the most recent NFB data shows relatively stable food costs in many communities, a trend that public health dietitians continue to examine closely.

To protect confidentiality, food costs are averaged at the economic region level rather than published by individual community.

Shelter Costs (A Major Driver)

Housing remains one of the largest contributors to living wage calculations.

Rental data is primarily sourced from the Canadian Mortgage and Housing Corporation (CMHC) where available. In communities where CMHC data is limited, alternative sources are used, including:

• The Canadian Rental Housing Index (CRHI), adjusted for inflation
• The Rural Housing Information System (RHIS), which tracks current rental listings in rural areas

These additions help address long-standing gaps where reported rents were far below current market realities.

Utilities, tenant insurance, and internet costs are also factored into shelter-related expenses.

Transportation

Transportation assumptions vary depending on whether a community has sufficient public transit.

• In rural areas, car ownership is assumed to be necessary
• In urban areas, a mix of transit passes and car ownership is used
• In mixed regions, a weighted average reflects both realities

Updated methodology this year corrected duplicated maintenance costs and adjusted average kilometres driven, resulting in a more accurate reflection of real transportation expenses.

Child Care

Child care remains one of the most significant costs for families.

While federal and provincial subsidies have reduced fees for younger children, costs for school-aged children, including before- and after-school care and day camps, continue to rise. These realities are fully reflected in the living wage calculation.

Other Essential Expenses

Additional household costs are calculated using Statistics Canada’s Market Basket Measure, covering items such as:

• Personal care and household supplies
• School supplies and fees
• Modest recreation and family outings
• Clothing and footwear

This category helps reflect participation in everyday life, not just survival.

United Way’s Role

Northumberland United Way is a Living Wage employer, and this matters to us. It reflects our commitment to decent work, financial stability, and community well-being, not just in what we advocate for, but in how we operate.

Understanding the living wage helps ground conversations about affordability, work, and community resilience.

It starts with making sure people can meet their basic needs.