Wellington City Council may soon pay its employees a 'living wage'.
Council members on Thursday voted 10 to five in favour of paying $18.40 per hour to employees earning less than that.
Councillor Justin Lester said a report has been commissioned to advise the council how to phase in the higher wage, and who will get it.
He said 90 in-house staff will initially, receive this wage, but a roll out to contracters and employees in council controlled organisations will be assessed.
The amount of $250,000 has been budgeted, which Mr Lester said will likely increase.
Councillors also voted for a rates rise of 2.5%.