Toronto, ON — A new report from the Ontario Living Wage Network (OLWN) reveals that the hourly rate required for workers to make ends meet in the Greater Toronto Area (GTA) has climbed to $27.20 per hour, highlighting the growing gap between wages and the real cost of living across the province.
This year’s figure marks a $1.20 increase from last year’s GTA living wage of $26.00 per hour — a 4.6% rise that reflects ongoing housing pressures despite a slowdown in food inflation. By contrast, Ontario’s minimum wage, which rose to $17.60 on October 1, 2025, remains $9.60 below the amount needed for a comfortable standard of living in the region.
“If you’re working that minimum wage job, you’re going to be short by roughly $336 a week,” said Craig Pickthorne, OLWN’s Director of Communications. “The gap between the minimum wage and living wage is widening every year, and the biggest culprit is housing.”
What Is a “Living Wage”?
The living wage represents the hourly rate required for full-time workers to meet basic needs such as food, shelter, childcare, transportation, and recreation, without relying on credit or long-term savings. OLWN calculates regional living wages across 10 Ontario regions, based on household scenarios including single adults, single parents, and two-parent families with young children.
While the living wage does not account for savings or retirement, it does include the effects of taxes, transfers, and government benefits.
Housing Costs Driving Wage Increases
According to OLWN, rent now accounts for 30% to 40% of the total living wage rate, making it the single largest factor in this year’s increases. “We’ve seen food prices stabilize somewhat, but the cost of housing continues to soar,” said Pickthorne.
A recent Zoocasa report found that a single renter in Toronto would need to earn $86,062 annually — or $44.13 an hour — to rent a one-bedroom apartment while keeping housing costs within the recommended 32% of gross income. That rate is 151% higher than Ontario’s minimum wage and nearly 62% higher than the GTA’s calculated living wage.
As rental prices rise, many Torontonians are leaving the city, pushing housing costs — and thus living wage calculations — higher in surrounding regions such as Bruce Grey Huron Perth Simcoe, where rates jumped 6.7% to $24.60 per hour.
Living Wage Rates Across Ontario (2025)
- Greater Toronto Area: $27.20
- Bruce Grey Huron Perth Simcoe: $24.60
- Ottawa: $23.40
- Dufferin Guelph Wellington Waterloo: $23.00
- Hamilton: $22.60
- Eastern Ontario: $22.20
- Southwest Ontario: $21.50
- Brant Haldimand Norfolk Niagara: $21.40
- Northern Ontario: $21.10
- London Elgin Oxford: $21.05
Inequality Gaps Persist
The report also highlights persistent income disparities across race and gender.
- In Toronto, 17.3% of workers earn below a living wage.
- Racialized workers are more likely to fall below the threshold (20.1%) compared to non-racialized workers (12.1%).
- Women are also disproportionately affected — 20.4% earn less than a living wage versus 14.4% of men.
- Racialized women face the largest wage gap, with 23.4% earning below the living wage in Toronto.
In Greater Sudbury, the disparity is even more pronounced — 36% of racialized workers earn below a living wage, compared to 16.5% of non-racialized workers.
A Growing Affordability Divide
Advocates say the data underscores a troubling trend: while wages are inching up, living costs — especially rent — are outpacing income growth, leaving thousands of working Ontarians struggling to make ends meet despite full-time employment.
“Ontario’s affordability crisis isn’t just about inflation — it’s about wages that haven’t kept up with the cost of basic life necessities,” Pickthorne added.
OLWN continues to call for policies that link minimum wage to living wage calculations, improved affordable housing initiatives, and expanded childcare access to help close the province’s widening income gap.