Canadian provinces set to increase wages to 'balance financial realities'
Four Canadian provinces are set to raise their minimum wage by Oct. 1, 2024 in a bid to support low-wage workers amid ongoing economic pressures.
Minimum wage is the lowest wage rate an employer can pay an employee in that province or territory.
“Most employees are eligible for minimum wage, whether they are full-time, part-time, casual employees, or are paid an hourly rate, commission, piece rate, flat rate or salary,” says the Ontario government.
Some employees have jobs that are exempt from the minimum wage provisions of the Employment Standards Act.
Ontario to raise minimum wage to $17.20 per hour
Ontario’s Ministry of Labour has confirmed that the province’s general minimum wage will rise to $17.20 per hour on October 1, 2024. This is a significant increase from the current $16.55, part of Ontario’s annual wage adjustments tied to the Consumer Price Index (CPI).
“Compliance with the minimum wage requirements is determined on a pay period basis,” the Ministry noted in its latest release.
Specialized minimum wage rates will also see increases, with the student minimum wage moving to $16.20 per hour, and homeworkers earning a minimum of $18.90 per hour. These adjustments are expected to further support workers in part-time, commission-based, and specialized roles, the release said.
Saskatchewan minimum wage reaches $15
Saskatchewan is also slated for a minimum wage increase, with the rate rising to $15 per hour by October 1, 2024. The province has moved away from its traditional indexation formula, opting instead for market-driven adjustments.
“Our government is committed to ensuring life is affordable for our low-income residents by increasing the minimum wage over the next three years,” said Don Morgan, Labour Relations and Workplace Safety Minister, in a 2022 announcement.
This shift represents a 27% increase in minimum wage compared to previous years, marking a significant step toward aligning wages with market conditions. This will also bring Saskatchewan in line with other provinces that are moving towards a $15 minimum wage.
Manitoba’s minimum wage climbing to $15.80
Manitoba’s minimum wage is set to increase to $15.80 per hour on October 1, positioning the province among the top three in Canada for minimum wage rates.
This follows a series of wage hikes, with the most recent being a rise to $14.15 in April 2023. Labour and Immigration Minister Jon Reyes announced that the phased increases are aimed at addressing financial challenges faced by Manitobans, “To balance the financial realities of Manitoba workers and the economic challenges for small businesses, we implemented a phased-in approach,” Reyes stated.
The province has also implemented the Small Business Minimum Wage Adjustment Program, designed to ease the transition for businesses affected by the wage increases.
These wage increases reflect broader efforts across the country to address the rising cost of living and ensure that wages are more closely aligned with economic conditions.
Prince Edward Island minimum wage increases to $16
Prince Edward Island's minimum wage will rise to $16.00 per hour on Oct. 1, 2024, up from $15.40 earlier this year. This marks the province’s second increase in 2024, following an April adjustment.
The changes are based on the recommendations of the Employment Standards Board, which reviews the province’s wage annually to ensure it keeps pace with the rising cost of living.
According to Statistics Canada, 45% of Canadians report financial difficulties, a 12-percentage-point rise compared to data from two years ago. The wage adjustment in P.E.I. is part of ongoing efforts to alleviate the financial strain many workers are facing across the country.
