The rise in the cost of living has been more brutal for the least well-off over the past year. The income needed to “live with dignity” has increased faster than the rise in inflation, according to a study by the Institute for Socioeconomic Research and Information (IRIS).
“The room for maneuver for people in poverty or on the verge of poverty is less,” underlines the researcher for the left-wing think tank, Eve-Lyne Couturier, in an interview.
“It is more difficult to make a choice between the different categories of expenses and the most important expenses, in particular housing and food, [qui] are categories […] very sensitive to inflation,” she continues.
In 2015, IRIS developed “sustainable income”, which is intended to be an alternative indicator to the poverty line. Sustainable income includes essential needs, but also the expenses necessary to “live with dignity”, including for example vacations, cultural outings and savings to cover unforeseen events.
IRIS measured the indicator in seven municipalities in Quebec for three household profiles: a single person, a single-parent family and a family of four.
Depending on the different situations, the viable income threshold has increased by between 6.2% and 19.3% over the past year, estimates IRIS. To live with dignity, a single person would need between $30,738 (Trois-Rivières) and $43,609 (Sept-Îles), depending on where they live. For a family of four, the necessary income is between $72,788 (Trois-Rivières) and $86,585 (Sept-Îles).
For example, a family in Sherbrooke needs an income of $78,563 in 2024 to reach the viable income threshold. This is an increase of 15.3% in one year. A single person in Quebec needs $35,395, up 13.8% compared to last year.
IRIS also revised its methodology, as it does every five years, so that its data is “as reliable as possible”. For example, for groceries, his team took price readings in the seven regions. Previously, surveys were taken in Montreal and adjusted for other regions using other data. “The 2024 data is much more representative of the cost of groceries,” she explains.
The IRIS report shows that the minimum wage would not be enough to escape poverty, argues Mme Couturier.
For example, in Montreal, a single person who works at minimum wage 35 hours per week only achieves 68% of their viable income. This person would have to earn $27 per hour to reach viable income, again according to IRIS.
The minimum wage, for its part, will increase by 50 cents to $15.75 on 1er next May.
A 65-year-old senior who receives $16,000 from the Quebec Pension Plan, in addition to the Guaranteed Income Supplement and the Old Age Security pension, but who has no retirement savings, meets only 75% minimum viable income.
“We see that for people who are retired or for those who work for low wages, getting out of poverty is very demanding,” underlines the researcher.