A Living Wage for Salt Spring Island, 2018
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A Living Wage for Salt Spring Island, 2018
Executive Summary
Salt Spring Island’s 2018 Living Wage
The 2018 living wage for Salt Spring Island is $20.95/hour. This is
“the hourly rate at which a household can meet its basic needs, once
government transfers have been added to the family’s income (such
as federal and provincial child tax benefits) and deductions have been
subtracted (such as income taxes and Employment Insurance premiums).”1
Put more simply, a living wage is the hourly wage that each parent must
make to cover baseline expenses for an average family of four. Ensuring
that a family has the means to provide adequate housing, transportation,
childcare, and other essentials has positive effects on children, parents,
and employers.
What is a living wage family?
A living wage family is defined as four people—two adults and two
children (a 4-year-old and a 7-year-old). Both parents in the living
wage family work 35 hours per week, year-round, and they work to pay
for housing, food, transportation, childcare, health care, clothing and
footwear, parents’ education, a small contingency fund, and other regularly
occurring expenses.
Why is a living wage important?
Salt Spring Island is rich in arts and culture and outdoor and recreational
opportunities. The community is tightly knit and characterized by high
rates of engagement through volunteerism, interest in local issues,
and charitable giving. At the same time, Salt Spring Island residents—
particularly those with young families—may face cost of living challenges
due to the rural and somewhat remote location of the island, the
dependence of the island on tourism, and the need to work two or more
part-time jobs to make ends meet.
The living wage differs from the minimum wage. A minimum wage “is the
legal minimum all employers must pay. The living wage sets a higher
test—a living wage reflects what earners in a family need to bring home,
based on the actual costs of living in a specific community.”1
Though the minimum wage in British Columbia rose to $12.65 in June 2018,
the minimum wage still remains lower than the living wage by $8.30. By
examining the living wage, and placing it in the context of the minimum
wage, we can better understand the costs that influence quality of life on
Salt Spring Island.
2
Salt Spring Island Context
Relevant demographic and contextual information:2
• Salt Spring Island’s population is 10,557.
-- Of that number, 1731 individuals, or 16%, are children ages 0 to 19.
-- Of the 3,090 families on Salt Spring Island, 900, or 29%, are
couples with children.*
-- There are an additional 400 families on Salt Spring Island headed by
single parents.**
• Sales and service is the most prevalent industry on Salt Spring Island,
with 20% of employed islanders working in this industry. Many of these
employees are engaged in visitor services, with 2010 estimates noting that
tourism generates an annual before-tax revenue of $18 million.3
• 16.3% of children live in poverty in the Capital Regional District, which
includes Salt Spring Island.
• A single person earning minimum wage spends 59.7% of their income on rent.
• Food costs are nearly 10% higher than in neighbouring communities on Vancouver Island.
• Ferry rides are essential to access some health services, some social services, and recreation and cultural activities.
*Not all of these families are living wage families, as some are two parents and one child, or two parents and three or more children
**While some communities have concluded that their living wage is also enough for single-parent families, this has not been
calculated for Salt Spring Island.
Our Vital Signs survey (2017) asked residents to reflect on the biggest challenges facing the island. Affordability
and housing were the most frequent responses, with this quote linking housing, affordability, and employment:
“My biggest concern is affordable housing. There is nothing for our mid-to-lower income families to rent
[and that is] making it difficult for our businesses to find reliable and stable employees.”
How is the living wage decided?
The report uses a national standard for the living wage calculation: The Canadian Living Wage Framework, which
was developed by the Canadian Centre for Policy Alternatives (CCPA) in conjunction with First Call BC: BC Child
and Youth Advocacy Coalition.4 The CCPA and First Call BC are joined by non-profits, social planning councils,
municipalities, and community foundations across the country to form a community of practice. Jointly, these
organizations promote the methodology and work toward building national consistency.
The living wage family is comprised of two parents and two children aged four and seven. Each parent works full-
time (35 hours per week), year-round.
The purpose of the living wage calculation is to understand the income needed for a basic quality of life. Thus, the
living wage is the hourly rate of pay at which a household can meet its expenses after government transfers have
been added (i.e., Child Tax Benefits, GST), and government deductions have been subtracted (i.e., taxes, CPP,
EI). Family expenses are described on page 5, and methodology (including government transfers and deductions)
is detailed on page 6.
3
The Salt Spring Island 2018 Living Wage
With two parents working full-time, the amount needed for a family of four to pay for necessities, support healthy
childhood development, and escape financial hardship is $20.95 per hour, or $72,503.19 annually ($36,251.60 per
parent, annually, if both parents earn the same wage).
The monthly family expenses are based on conservative or lower than average amounts to provide only an
adequate level of well-being based on what a family requires.5
Monthly expenses
Shelter: $2,061.65
Food: $900.37
Transportation: $491.55
Child care: $1,100.00
Health – MSP: $75.00
Health – non-MSP: $148.00
Clothing & Footwear: $146.14
Parent’s Education $86.92
Contingency: $248.38
Other: $789.87
TOTAL: $6,047.88
Living wage calculations do not include any additional costs, including the following:
• Debt payments, such as credit cards or student loans • The cost of owning a home
• Retirement savings • The cost of care for aging parents
• Children’s post-secondary education savings
Itemized costs as percentage of total monthly expenses
Parent education - 1.4% Clothing and footwear - 2.4%
MSP - 1.3% Non-MSP health expenses - 2.5%
Contingency - 4.1%
Shelter - 34.1% Transportation - 8.1%
Other - 13.0%
Child care - 18.2% Food - 14.9%
4
Monthly Expenses
Food: $900.37 Childcare: $1,100.00
This is the monthly cost of healthy eating for a family of The amount listed is the median monthly cost of full-time
four living in the southern region of Vancouver Island. care for a 4-year-old and out-of-school care (summer
and holidays) for a 7-year-old.
Note: Because a standard living wage methodology
is used across the province, the variables of each On Salt Spring Island: There are no licensed childcare
participating living wage community must be providers currently offering before-school care on Salt
considered. Our Vital Signs report found that food cost, Spring Island, and only one provider currently offering
on average, 10% higher on Salt Spring than in Victoria. after-school care. Therefore, this cost has been omitted
To comply with methodology, we were not able to add from our calculation.
an additional 10% to the monthly cost of food.
Since there is no school on Fridays, parents must also
arrange for care for their young children. Paid recreation
Shelter: $2,061.65 programs, shared childcare with other families, and
unpaid time off may all be employed to ensure young
Shelter costs include monthly rent for a three-bedroom
children are not left alone.This is the mandatory monthly
unit, plus utilities and insurance. Shelter costs are also
provincial rate for a family of three or more.
inclusive of internet and two basic cell phone plans
(Canada-wide talk and text only; no data).
Clothing & Footwear: $146.14
Transportation: $491.55 This is the estimated monthly cost for a family of four.
This is the monthly cost of owning, operating, and
maintaining one used vehicle. Contingency: $248.38
Ferry travel is also necessary for families living on Salt This is the only savings included in the living wage
Spring Island, so the cost of one ferry trip to Vancouver calculation, and it is coverage for unexpected
Island per month has been added to the calculation. expenses. It is comprised of two weeks’ pay for two
Using spring 2018 fare rates, and applying the parents earning the living wage. This does not include
Experience Card discount, the living wage family would long-term savings, like a down payment, children’s
pay $39.70 per trip. education, or retirement.
Health – MSP: $75.00 Parents’ Education: $86.92
This is the mandatory monthly provincial rate for a family This is the average cost of two courses at Camosun
of three or more. College, including tuition, student fees, and textbooks.
This cost assumes that the parent utilizes online learning.
On Salt Spring Island: Some medical services require
travelling off island, which is costly even with the Transit On Salt Spring Island: This figure does not include
Assistance Program (TAP). time away from work or children, or travel costs.
Health – Non-MSP: $148.00 Other: $789.87
This is the cost for health care not covered by MSP, This amount reflects a variety of costs, including
including prescriptions, and vision and dental services. personal care, household supplies and furnishings,
small appliances, entertainment, recreation, etc. It is
estimated at 75% of the combined cost of food and
clothing and footwear.
5
Methodology notes
The national living wage framework includes both a living wage definition and calculation methodology that have
been adopted across the country. British Columbia has produced a specific Calculation Guide, which is updated
annually to reflect any provincial changes in governments transfers.6 This calculation guide was used in the
preparation of this report. Additionally, CCPA and First Call BC leads were engaged throughout the process to
ensure that our data and methods are correct.
Both government transfers and government deductions have been taken into consideration, and are as follows:
Government transfers: Government deductions and taxes:
• Canada Child Tax Benefit (CCTB) • Employment Insurance premiums
• Universal Child Care Benefit (UCCB) • Canada Pension Plan premiums
• BC Early Childhood Tax Benefit (BCECTB) • Provincial taxes
• GST credit • Federal taxes
• BC Rental Assistance Program • Tax credits
• BC Childcare Subsidy -- Employment Tax Credit
• British Columbia Low Income Climate Action Tax -- Tuition, education, and textbook amount
(BCLICAT) -- Medical expenses
Government transfers positively influence the living -- BC Tax Reduction Credit
wage by providing a source of income for family Government deductions and taxes negatively affect the
expenses and thus reducing the amount of money living wage by taking away from employment income.
parents need to earn. Negative impacts can be reduced via tax credits.
In some instances, data for Salt Spring Island was not readily available and divergences from the methodology
were required. These are noted below, alongside the data sources.
Taxes and transfers
These data were drawn from the following points in time, and from provincial and federal sources: government
transfer amounts (CTTB, GST, and BCLICAT) for July 2017 to June 2018, UCCB and BCECTB for the 2018
calendar year, and government deductions and taxes for the 2017 tax year.
Some families benefit from the British Columbia Low Income Climate Action Tax or the British Columbia Rental
Assistance Program, but the earnings of the Salt Spring Island living wage family are too high to allow for participation.
6Household Costs Childcare
This cost includes the median cost of full-time, full-year care
Food for the 4-year-old, and full-time holiday and summer care
for the seven-year-old. Typically, living wage calculations
Food cost estimates were derived from the 2017 food
also include the cost of before- and after-school care for
costing data provided by Population and Public Health,
children, but no licensed childcare provider offered before-
BC Centre for Disease Control, part of Provincial Health
school care at the time of this report, and only one licensed
Services Authority.7
provider offers after-school care.
The Salt Spring Island Foundation’s Vital Signs report
This data was obtained by conducting phone and email
was also used as a source when comparing the cost of
interviews with licensed childcare providers on Salt Spring
groceries on Salt Spring Island to the cost of groceries
Island. The median cost was used. Since the living wage
in Victoria.2
assumes that the four-year-old is in full-time, full-year
care, none of the preschools or partial-day options were
Shelter
considered in determining the median rate.
Reliable and recent housing data specific to Salt Spring
Island is difficult to find. After weighing many options, Healthcare
the Salt Spring Island Affordable Housing Needs
This cost includes the price of mandatory enrolment in
Assessment, 2015, was determined to be the best
the Medical Services Plan of BC, and the estimate for a
choice.8 This source was chosen because it is the most
Pacific Blue Cross family plan.15, 16
localized and comprehensive of all options. Because
the data was from 2015, the rental figures were updated Clothing & Footwear
using 2017 Consumer Price Index values. This is a
conservative estimate. Anecdotal evidence suggests This very conservative cost is taken from the Market
that families are paying higher rents at the time of this Basket Measure and adjusted using the 2017 Consumer
report. Since 2015, short term vacation rentals have Price Index.10,13
increased in popularity, decreasing the availability of
Parent’s Education
long-term rentals for island residents.
This cost was calculated in April 2018, using information
Utilities (water, fuel, and electricity) were calculated available online from Camosun College. This is the cost
using Vancouver Island data and adjusted using the of two basic courses, and does not include fees for lab
2017 Consumer Price Index.9, 10 or science courses.17
Internet and cell phone estimates are both from Telus.
Contingency
The internet service provided is for the use of 15mbps
download, 1mbps of upload, and 200GB of data per This is a small fund reserved for emergencies. It is
month. The cell phones (one for each parent) have calculated at two weeks of pay at the living wage rate for
unlimited Canada-wide talk and text but no data.11 each parent.
The insurance estimate was provided online by Island Other
Savings, for $50,000 coverage and a $1,000 deductible.12 This category includes items such as toiletries and
personal care, cleaning and household supplies,
Transportation
furniture, laundry, children’s school supplies and fees,
The cost of transportation, which includes payments on bank fees, minimal recreation and entertainment, family
a used car, insurance, maintenance, and gas, comes outings (to a local play or concert, for example), birthday
from the Market Basket Measure, which has been presents, a modest vacation, and hobby activities for the
adjusted using the 2017 Consumer Price Index.10,13 children (an art class or participation on a sports team,
for example).
Our calculation also includes the cost of one ferry trip
to Vancouver Island per month, and assumes families Costs that fall under this category are calculated at 75%
are utilizing the BC Ferries Experience Card. Fares were of the combined cost of food and clothing and footwear.
obtained online from bcferries.ca.14
7About the Salt Spring Island Foundation
Vision:
A healthy and caring community
Mission:
To inspire philanthropy in support of local charities for the enduring benefit of our community
Who We Are:
Since 1984, the Foundation has enriched our island’s quality of life by assisting local charities through responsive
grant making and by fostering community partnerships and initiatives. Foundation grants tackle important
community needs and touch the lives of virtually every islander in some way.
Community Research:
Our Living Wage Report is a natural development from our VitalSigns® report. We believe that this important
information helps create a fuller picture of our community and assists us in supporting local charities that work with
islanders to realize our shared vision of a healthy and caring community.
Photo credits:
Pages 1 & 3: John Allison. Page 2 (top to bottom): Jen MacLellan, Christopher Roy, Dave French
Sources:
1. Living Wage Canada, “What is a Living Wage?” Accessed April 2018.
2. Salt Spring Island Foundation, 2017 VitalSigns® report
3. Tourism British Columbia, Salt Spring Island Tourism Development Plan. Accessed May 2018.
4. Living Wage Canada, “Canadian Living Wage Framework.” Accessed April 2018.
5. Living Wage Canada, “Calculating a Living Wage.” Accessed April 2018.
6. Canadian Centre for Policy Alternatives, British Columbia Calculation Guide. Accessed April 2018.
7. Food cost estimate derived from the 2017 food costing data provided by Population and Public Health, BC Centre for
Disease Control, part of Provincial Health Services Authority.
8. Salt Spring Island Affordable Housing Needs Assessment, 2015. Accessed April 2018.
9. Data provided by Canadian Centre for Policy Alternatives.
10. Statistics Canada, Consumer Price Index. Accessed April 2018.
11. Estimate provided by Telus via telus.com. Accessed April 2018.
12. Estimate provided by Island Savings via islandsavings.ca. Accessed April 2018.
13. Statistics Canada, Market Basket Measure. Accessed April 2018.
14. Fares calculated using BC Ferries Fare Index. Fare costs were calculated assuming the use of an Experience Card.
Accessed May 2018.
15. British Columbia Medical Services Plan Monthly Premium Rates. Accessed April 2018.
16. Estimate provided by Pacific Blue Cross, via pac.bluecross.ca. Accessed April 2018.
17. Camosun College, Tuition and Fees. Accessed April 2018.
For more information:
Salt Spring Island Foundation
158A Fulford Ganges Road, Salt Spring Island, BC (office)
PO Box 244 Ganges PO, Salt Spring Island, BC, V8K 2V9 (mail)
250-537-8305 info@ssifoundation.ca www.ssifoundation.ca
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