Napier City Council has 136 employees earning less than the living wage, while Hawke's Bay Regional Council has none.
Of 504 permanent and fixed-term employees at Napier City Council, 136 were earning less than the 2017 living wage of $20.20 per hour.
Spokeswoman Sue Matkin said the city council should not be compared to others in the main centres.
"The living wage is a notional amount considered to be what families need to live on, regardless of where they live in New Zealand.
"But to compare the cost of living in Hawke's Bay to other major cities in New Zealand is not completely reasonable."
The council also had a small number of employees earning less than minimum wage.
Four of these workers were students on the starting out wage, Ms Matkin said.
Napier City Council also had 91 out of 113 casual employees working for less than the new living wage.
Local E Tu organiser Thomas O'Neill said the living wage was not based on the amount required to live in major cities.
"It's been calculated on what is effectively a wage to raise people out of poverty," he said.
"It's not an Auckland-generated figure. The amount required to live in Auckland would be higher than that."
Mr O'Neill said the number of low-paid workers at Napier City Council was high - and the number would likely double or triple if contractors were included.
Hastings District Council had 69 workers earning less than the living wage, but would not say which departments they worked in, citing privacy reasons.
The Hawke's Bay Regional Council had 190 staff members, with none earning below the living wage. This did not include contractors.
Two regional council staff earning between $19.80 and $20.20 would receive a pay rise by July 1, when the 2017 living wage officially applied.
Central Hawke's Bay District Council had three staff earning below $20.20.
Living Wage Aotearoa convener Annie Newman said councils had a moral obligation to pay workers a fair wage.
"Public money comes from citizens and should generate greater wealth for citizens.
"If councils are generating poverty jobs, there's a moral reason why that should change."
Auckland and Wellington City councils recently decided to implement a living wage policy for all staff.
Nelson City Council also included implementation of the living wage in this year's draft annual plan.
There were more than 60 accredited living wage employers in New Zealand, according to Living Wage Aotearoa's website.
Many of these were unions and charities.