As of October 1, 2024, workers in four Canadian provinces are experiencing an increase in the minimum wage, offering much-needed relief amid rising living costs. These wage hikes come at a time when inflation continues to impact everyday expenses, from groceries to housing, across the country.
Each province sets its minimum wage based on factors like inflation, economic conditions, and local living costs. In recent years, growing pressure from labor organizations and advocacy groups has pushed for higher minimum wages to better support low-income workers, especially in sectors such as retail, hospitality, and food service.
Provincial Minimum Wage Increases
Ontario
Ontario workers saw a notable wage increase, with the minimum wage rising from $16.55 to $17.20 per hour, effective October 1, 2024. For someone working 40 hours a week, this raises their annual earnings by about $1,355.
Manitoba
Manitoba’s minimum wage rose by 50 cents, increasing from $15.30 to $15.80 per hour. This adjustment is part of a long-term plan to gradually bring wages in line with inflation. While the increase is helpful, Manitoba’s minimum wage still lags behind that of some other provinces with higher rates.
Prince Edward Island (PEI)
In PEI, workers saw a second wage increase this year. After a raise from $15 to $15.40 earlier in 2024, the minimum wage was increased by another 60 cents to $16 per hour in October. This adjustment is aimed at helping workers cope with rising costs of essential goods and services affected by inflation.
Saskatchewan
Saskatchewan’s minimum wage rose from $14 to $15 per hour as of October 1, 2024, marking one of the largest percentage increases across Canada. Despite this boost, Saskatchewan’s minimum wage remains the lowest in the country.
Minimum Wage Across Canada
British Columbia (BC)
BC did not see an increase this time, as the province had already raised its minimum wage in June 2024 from $16.75 to $17.40 per hour, making it one of the highest in the country.
Nunavut
Nunavut boasts the highest minimum wage in Canada, standing at $19 per hour, a reflection of its higher living costs.
Yukon
Yukon’s minimum wage is set at $17.59 per hour, also higher than most other provinces and territories.
In addition, on April 1, 2024, the federal minimum wage was increased to $17.30 per hour. This applies to approximately 30,000 workers in federally regulated sectors such as telecommunications, banking, and interprovincial transportation. A full-time worker at the federal minimum wage can expect to earn nearly $36,000 annually, based on a 40-hour workweek.
Implications for Workers and Businesses
The minimum wage increases are designed to help workers manage the escalating cost of living, especially those in jobs with historically low wages. Even modest increases in wages can significantly impact employees’ ability to afford necessities like housing, food, and transportation.
However, these increases may present challenges for small and medium-sized businesses, particularly in industries like retail, hospitality, and services. Larger companies are often better equipped to absorb the higher labor costs, while smaller businesses with more limited budgets may face difficulties. This could result in higher prices for consumers or a reduction in employees’ hours as businesses adjust to the increased wage burden.