The move aims to attract more investments and jobs to the area
Starting October 1, the minimum wage in Saskatchewan will be increased to $13 per hour, the first in the province's three-year initiative to hike its citizens' salaries. This means that by October 2023, the province will be inching up the minimum wage to $14 per hour, to $15 per hour starting October 2024.
According to the provincial government, this is equivalent to a 27% increase to the minimum wage by 2024, and an increase of 89% if taking into account the province's $7.95 minimum wage in 2007.
Labour Relations and Workplace Safety Minister Don Morgan attributed the wage increase to the government's commitment to assist low-income earners amid world events that put "upward pressure on the cost of living" across the country.
"Our government is committed to ensuring life is affordable for our low-income residents by increasing the minimum wage over the next three years. This commitment to affordability will support Saskatchewan workers, and ensure Saskatchewan is the best place to live, work, and raise a family," said Morgan.
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The province also aims to attract more investments and jobs through the move.
"As we continue to grow Saskatchewan, we want to attract quality investments and jobs so that all citizens can benefit. Making this change to the minimum wage is a step in that direction," explained the minister.
The salary hike this year raises the previous $11.81 per hour for minimum wage earners, with the provincial government opting to reflect market adjustment instead of the traditional indexation formula.
The formula, according to the province, gives "equal weight to changes to the Consumer Price Index and Average Hourly Wage for Saskatchewan."
This time, however, the wage hike increase until 2024 will reflect a move more closely aligned to workers' salaries with changing market forces.