There's plenty of pride among Wellington City councillors after voting to approve the living wage.

The initiative is one of many that have been approved for the next 10 years under the Long Term Plan.

Council workers already receive the minimum wage which was implemented last year, but a living wage of $18.40 will now be available to all council contractors. 

Councillor Paul Eagle believes the commitment to the wage is a pioneering moment.

"We will not let the government legislation of the day say 'you can't do this, you can't do that'. Pioneers do things when others don't do them."

Councillor Iona Pannett is exceptionally proud of the move.

"That will definitely go down as one of the highlights of my time here."

The council has also signed off on an average rates increase of 3.9 percent over the next decade.

Rates will rise 4.5 percent a year for the next three years.