Mind the gap: distance between Alberta’s living costs and minimum wage widens

Alberta’s hourly minimum wage is still below the living wage for families and it is widening, says the Alberta Living Wage Network (ALWN).

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The gap is growing and the province plays a big part in this, says Ryan Lacanilao, ALWN Economist to the Daily Herald Tribune.

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“It is often changes or cuts directly made by the province, for example in childcare.” The news comes as ALWN announces living wage rates for 21 communities across the province – all above the province’s minimum wage of $15 per hour.

Lacanilao says the province’s revamped childcare affordability program had mixed results. Living wages in 15 of 21 communities increased this year which resulted in large part, from changes in childcare, shelter, and transportation costs.

“Most of the communities (15 of 21) were better off last year,” Lacanilao says citing a childcare affordability grant and an additional childcare subsidy for those with a family income below $120,000 available in 2024. Six communities saw lower toddler childcare expenses with the flat parent fee this year.

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”This makes a huge difference for families in Grande Prairie and northern Alberta,” adds Lacanilao noting vehicle insurance rate caps being upped are also increasing costs and contributing to the gap between minimum wage in Alberta and a living wage.

“If you have a have a perfect driving record – the amount you pay still goes up.”

Living wage calculations are an important indicator of affordability and, overall, the rise in living wages demonstrates that life is becoming more unaffordable for Albertans.

The 2025 Living Wages in 21 partner municipalities in Alberta:

Airdrie: $29.00/hr Up 19.3% from last year

Barrhead: $21.55/hr Down 12.0% from last year

Bonnyville: $22.15/hr Down 6.1% from last year

Brooks: $22.00/hr Up 18.9% from last year

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Calgary: $26.50/hr Up 8.4% from last year

Cold Lake: $19.10/hr Down 2.3% from last year

Drayton Valley: $20.35/hr Up 2.5% from last year

Edmonton: $22.30/hr Up 7.0% from last year

Fort McMurray: $23.00/hr Down 2.1% from last year

Grand Prairie: $21.80/hr Up 15.6% from last year

High River: $23.40/hr Up 8.8% from last year

Jasper: $31.80/hr Up 1.3% from last year

Lethbridge: $22.30/hr Up 11.5% from last year

Lloydminster, AB/SK: $21.65/hr Up 15.5% from last year

Medicine Hat: $18.15/hr Up 3.4% from last year

Red Deer: $20.65/hr Up 9.3% from last year

Rocky Mountain House: $21.85/hr down 8.0% from last year

Special Areas: $21.25/hr Down 6.0% from last year

Spruce Grove: $23.70/hr Up 14.8% from last year

St. Albert: $25.60/hr Up 17.7% from last year

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Stony Plain: $24.30/hr Up 14.1% from last year

Alberta’s minimum wage of $15.00/hour only covers 50-80% of what’s required to live in communities across the province.

The ALWN started in 2021 and certifies employees who are paying a living wage more than 100 with the group in Alberta, plus 21 member communities.

“We look at greater economic trends, growth of city populations, all affect it. Rental rates, price of gas, transportation costs, and more.”

2025 has been a year that has seen Albertans face several economic challenges that have impacted the cost of living, key among those for most communities has been continued rising housing costs and rising costs in transportation.

2023 figures show that almost 6 in 10 minimum wage earners are female, and more than 1 in 3 is an immigrant. More than 16,000 minimum wage earners were supporting a child under 18, and 3 out of every 10 minimum wage earners are the head of their household.

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Alberta’s minimum wage does not increase with inflation, unlike British Columbia or Ontario. Alberta’s general minimum wage has remained at $15 per hour since October 2018.

Lacanilao underlined the importance of annual benchmarks for these figures, adding the purpose of this calculation is to highlight the true cost of living in Alberta; to provide municipalities with local data to support their decision making.

“(It is) important to do these each year to hold government account benchmark to previous year(s) affordability policies do not make sense. This gap is widening. Alberta is the lowest minimum wage in the province,” says Lacanilao.

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