Wellington City Council has voted to extend the living wage.

The wage of $18.40 will now become available to workers in council controlled organisations and contractors

The Wellington Chamber of Commerce are against the decision and say the council's decision is ideologically driven.

However, Living Wage New Zealand's Lyndy McIntyre says it's a step in the right direction, and the Chamber of Commerce is in a small minority of groups against the change.

"I believe the Chamber of Commerce submission was the only submission that opposed this - and hundreds and hundreds were in favour."