What Is Middle Class?
"A class of people intermediate between the classes of higher and lower social rank or standing; the social, economic, cultural class, having approximately average status, income, education, tastes, and the like." Dictionary.com
We define middle class as a group of people whom live in a single home, own a new vehicle, cover common monthly expenses, save for retirement and vacation once per year.
86% Of Canadians Earn Less Than Required To Be Considered Middle Class
In 2017, The Globe and Mail produced an article outlining the average salaries being earned in Canada and noted only 14% of Canadians earned, what we consider, is a middle class income. Read the article
Hourly Rate Needed To Be Considered Middle Class In Canada
(Based on the average cost of common expenses in Canada highlighted below.)
$70.00/Hr
Total hourly rate based on 2 adults working 37.5 hours per week each with 2 dependents. Combined salaries required equals $136,500/Yr.
$57.50/Hr
Total hourly rate based on 1 adult working 37.5 hours per week with 2 dependents. Salary required equals $112,125/Yr.
$51.25/Hr
Total hourly rate needed based on 1 adult working 37.5 hours per week with no dependents. Salary required equals $99,938/Yr.
Common Middle Class Monthly Expenses That Drive The Hourly Rate
(Based on a single person living in Canada today.)
20% Of Total Income In Savings Or Debt Repayment
Being able to repay debt such as students loans and unexpected expenses is a defining trait of the middle class. If 20% is saved a month, assuming no major expenses or debt other than what is mentioned above, a 40 year career would save $551,654 for retirement which still might not be enough.
31% Of Total Income To Taxes And Other Deductions
Taxes and deductions include: Federal tax, Provincial tax and EI premiums.
$8,328 Gross Income Required
Or $99,938/Yr salary to cover expenses, savings and taxes/deductions listed above for a single person, with no dependents in 2019.