Councillor Josh Chandulal McKay suggested an amendment to the second policy option to read "council employees are paid, at a minimum, the living wage, but seek to work towards living wage accreditation".
Mayor Hamish McDouall said he supported the amended option.
"I support this and think it is important that we are paying people a wage that allows them to enjoy Whanganui and not paying them so they have to hardscrabble," he said.
Councillor Hadleigh Reid said he did not think the matter of wages for council staff was a relevant issue given that council staff are already paid above the living wage.
"I would like to remind everybody that the living wage is based on a family with two parents working a minimum of 60 hours a week."
Councillor Rob Vinsen said he had doubts about the credibility of Living Wage Movement Aotearoa and the process used to define the living wage hourly rate.
"This is a political pressure group that has spread out from the UK who have brought the term living wage into the vocabulary," he said.
Vinsen said the dollar amount [for the living wage] was the same whether a person was single and living with their parents or supporting a family of five.
"The system that we've got has served us well," he said.
Deputy mayor Jenny Duncan said people's personal living circumstances should not be a factor when considering living wage rates.
"We're already doing the right thing in paying above the living wage minimum so let's include that in policy," she said.
Vinsen said an organisation like Living Wage Movement Aotearoa threw a "wild card" into a system that was working.
Councillor Helen Craig said she agreed with Reid and Vinsen's comments.
"I would like to say that as a governor, I expect us to be a fair employer and that's what the current policy delivers," she said.
Councillor Alan Taylor said he supported the amended option.
"The minimum wage is based on nothing more than what you can get away with," he said.
"Evidence on paying a living wage shows increased productivity and I find that compelling."
Duncan said rents had probably more than doubled in Whanganui in recent years and the price of groceries was "going absolutely ballistic".
"I'm glad that we don't have anyone working for council on the minimum wage," she said.
Duncan said Vinsen's comment that the living wage movement lacked credibility was "a bit disingenuous".
"Considering that a lot of organisations including councils are working towards accreditation," she said.
Councillor Kate Joblin said she believed that "anyone who has a swipe card" to get into the council building is someone who worked there and should be paid at least the current living wage of $22.75 an hour.
Living Wage Whanganui (LWW) convener Marion Sanson said it was "deeply disappointing" to learn the council would not be seeking accreditation.
In a submission to the council's Long-term Plan 2021-31earlier this year, LWW commended the fact the council was paying all its direct employees at least the living wage, while urging them to move towards accreditation and including contracted employees.
"I really thought we might see that get across the line," said Sanson.