BC raises minimum wage, but it’s still not enough according to economists

British Columbia's minimum wage will rise to $18.25 an hour on June 1, but a new report suggests the increase will do little to solve the province's growing affordability crisis. Research released by BC Policy Solutions and Living Wage BC found that roughly 775,000 workers, about one-third of all employees will still earn less than what researchers consider a living wage in their communities. While the provincial government says the increase will help workers keep pace with inflation, advocates argue that rising housing, food and transportation costs have widened the gap between wages and the actual cost of living.

Increase of just 40 cents not enough

The increase raises B.C.'s minimum wage from $17.85 to $18.25 per hour, a gain of 40 cents or roughly 2.1 per cent. The province says the adjustment is tied automatically to inflation under legislation adopted in 2024, giving both workers and employers greater stability among rising cost-of-living expenses. Labour Minister Jennifer Whiteside said the annual increases help protect low-income workers from rising costs while ensuring wages continue growing alongside inflation. B.C. currently has one of the highest provincial minimum wages in Canada, but the province also boasts the most expensive cost of living expenses in the country.

Housing advocates say inflation-based increases are simply no longer enough because the costs that matter most to households are rising faster than inflation. According to Living Wage BC, the provincial minimum wage remains below the living wage in every single BC community studied. The report found living wages now range from $21.55 per hour to $29.60 per hour. Grand Forks, BC, had the lowest cost of living, while Whistler has the highest. In Metro Vancouver, the living wage sits at $27.85 per hour — more than $9 above the new minimum wage.

What is a living wage?

A living wage is the hourly income a full-time worker needs to be paid in order to cover basic expenses without experiencing chronic financial stress. The calculation includes necessities such as housing, food, transportation, child care, and other essential costs. It does not account for retirement savings, debt repayment, homeownership down payments or extraordinary family expenses. Advocates argue the distinction between minimum wage and living wage has become increasingly important as affordability pressures intensify across the province. With the living wage not including retirement savings and down payments, it can also be called a ‘survivable wage'. The living wage is the bare minimum amount that Canadians need.

Not only minimum wage workers suffering

While the rise in minimum wage has dominated the conversation, even workers making more than the minimum wage are often underpaid within the context of a living wage. The report found the affordability challenge extends far beyond teenagers and entry-level workers. Most workers earning less than a living wage are over the age of 25. Researchers also identified significant disparities across demographic groups. Women and racialized workers were also substantially more likely to earn less than a living wage than men and white workers. In Metro Vancouver, nearly half of racialized women earn below the region's living wage threshold, according to the report.

In Kamloops, researchers calculated the local living wage at $24.45 per hour. Statistics Canada data obtained for the study showed approximately 27 per cent of the workforce, or 17,300 workers earn less than that amount. Similar affordability pressures exist throughout the province as rents, groceries and transportation costs continue rising faster than general inflation. Researchers noted that food prices have increased 31.4 per cent since 2020, while rents have climbed 33 per cent during the same period. By comparison, B.C.'s Consumer Price Index rose 22.4 per cent.

The findings arrive amidst continuing debate over how governments should address affordability. Living Wage BC argues voluntary wage increases by employers remain important but are insufficient on their own. The organization recommended increasing the provincial minimum wage to $20 per hour while expanding affordable housing construction, strengthening income support programs, and investing further in public transit. More than 500 employers across British Columbia have already voluntarily adopted living wage certification programs, though advocates say broader government action remains necessary. Approximately one-third of all workers in British Columbia make less than a living wage.