In early 2023, Council approved the implementation of a compensation approach that better aligns with compensation programs of large organizations and those with multi-year collective agreements, like ours.
The Fair Wage approach, based on a 5-year rolling average of the living wage BC External website, opens in new tab regional rate, makes implementation more practical as it smooths out year-over-year variability.
For 2025, the City of Vancouver Fair Wage is $23.37 per hour. The Fair Wage is the baseline compensation, including all direct wages and the value of any non-mandatory benefits such as paid sick leave, employer-paid Medical Services Plan premiums, and extended health benefits.
Who needs to pay a fair wage
As per Section 11A of the Procurement Policy PDF file (285 KB) , the Fair Wage program applies to City employees, as well as all employees of contractors and subcontractors, who provide services that meet the following fair wage criteria:
- The estimated annual value of the contract is greater than $250,000.
- The services are to be performed on properties owned by, or leased to the City including all streets, sidewalks, and other public rights of way.
- The services are provided on a regular, ongoing basis.
- The contractor is expected to perform the services for greater than 120 hours per year of the contract.
The fair wage standards are not applicable for:
- Emergency or non-recurring repairs or maintenance services where no standing contract is in place
- Services performed by organizations that lease property from the City
- Contracts with social enterprises