Client Update: Is the $15 per hour minimum wage headed East? A look at Atlantic Canadian wage increases for 2018
Employers across Canada are facing a series of recently-announced plans for substantial minimum wage hikes in several provinces. Notably, Ontario, Alberta and British Columbia have all committed to raising their minimum wage to $15.00 per hour in the near future.
For example, Ontario’s minimum wage will reach $15.00 per hour by January 1, 2019, after a significant jump from $11.60 to $14.00 per hour on January 1st of this year. Alberta has signed on to a similar approach, with the jump to $15.00 per hour coming into effect on October 1, 2018 after a $1.40 increase in September 2017 to reach $13.60 an hour. Meanwhile, British Columbia has opted for a slightly longer timeline to hit the $15.00 mark, with incremental increases planned over the next several years that will see the minimum wage reach $15.20 per hour by 2021.
This trend undoubtedly has employers in Atlantic Canada on high alert for signs that similar increases may be on the horizon here. Currently, most provinces in the region link minimum wage rates to national or provincial inflation rates according to the annual Consumer Price Index (CPI). As such, increases can usually be expected to be made on a regular yearly basis in relatively modest increments.
While Atlantic Canada’s upcoming minimum wage increases stick to this formula and do not adopt the considerable increases seen in other provinces, employers are advised to stay tuned to see if Atlantic Canadian governments opt to follow Ontario, Alberta and B.C.’s lead in the coming years.
Here are minimum wage increases employers can expect to see in Atlantic Canada in 2018:
Nova Scotia
On April 1, 2018, the general minimum wage in Nova Scotia will increase from the current rate of $10.85 per hour to $11.00 per hour, and from $10.35 per hour to $10.50 for inexperienced workers with less than three months of service or relevant experience.
While this 15 cent increase is consistent with the changes to the inflation rate, some legislators pushed for Nova Scotia to join other provinces in committing to a $15.00 minimum wage. In October 2017, an NDP private member’s bill introduced in the provincial legislature proposed a jump to a $15.00 per hour minimum wage by 2020. The Liberal government has rejected calls for such a sizeable increase, but stated that it was looking into a two-tier model for minimum wage rates which would allow small businesses with fewer than 26 employees to pay a different rate.
At $11.00 an hour, Nova Scotia’s minimum wage will remain the lowest of the Atlantic Provinces in 2018.
New Brunswick
New Brunswickers will see the minimum wage increase by 25 cents to reach $11.25 per hour on April 1, 2018. This follows a 35 cent increase last year, and makes it the second highest rate in the region. 2018 marks the first year New Brunswick’s minimum wage rate will be tied to inflation.
The New Brunswick NDP have also expressed support for a move towards a $15.00 minimum wage, and have pledged to implement this increase if elected in the upcoming provincial election this fall.
Prince Edward Island
Prince Edward Island’s minimum wage will remain the highest in Atlantic Canada when it increases by 30 cents to reach $11.55 per hour on April 1, 2018.
Newfoundland and Labrador
Newfoundland and Labrador will see a slight increase in the minimum wage for 2018, with a 15 cent increase to bring it to $11.15 coming into effect on April 1, 2018. This raise follows two increases last year that adjusted the rate to reflect inflation after it had previously been unchanged for a six year period.
This update is intended for general information only. If you have questions about the above information, please contact any member of our labour and employment group.
Archive
Kathleen Leighton If you employ an individual who holds a work permit to authorize their work in Canada, you likely have various obligations to adhere to and can face significant consequences if your business is…
Read MoreDavid Constantine and Joe Thorne In the recent Supreme Court of Canada decision in Desgagnés Transport Inc v Wärtsilä Canada Inc, 2019 SCC 58, the court examined how provincial statutes and the federal maritime law…
Read MoreDaniela Bassan Noteworthy cases Keatley Surveying Ltd. v. Teranet Inc., 2019 SCC 43 Considering Crown copyright for the first time, the Supreme Court of Canada upheld the dismissal of a class action brought by land…
Read MoreKathleen Leighton Employers in Canada are obligated to only employ individuals who are legally able to work for them. Individuals who are neither citizens nor permanent residents of Canada, but who wish to work in…
Read MoreTwila Reid, Jennifer Taylor and Richard Jordan The Supreme Court of Canada has revolutionized administrative law (again) with its new standard of review decision, Canada (Minister of Citizenship and Immigration) v Vavilov. The decision reflects…
Read MoreJonathan Coady, QC and Michael Fleischmann Once again, the time has come to review the year that was and to chart the course for the year ahead. For municipalities and planning professionals in Prince Edward Island,…
Read MoreWe are pleased to present Beyond the border, a quarterly publication aimed at providing the latest information to clients about new programs and other immigration-related information that may be pertinent to employers of foreign workers…
Read MoreWe are pleased to present the fifth issue of Discovery, our very own legal publication targeted to educational institutions in Atlantic Canada. As the pace around campus turns up as universities and colleges begin a…
Read MoreLevel Chan and Dante Manna On October 31, 2019, the Supreme Court of Canada issued its decision in Threlfall v Carleton University, 2019 SCC 50, dismissing an appeal from the Quebec Court of Appeal. Carleton…
Read MoreAndrew Burke, Colleen Keyes and David Slipp Starting January 1, 2020 “Distributing Corporations” under the Canada Business Corporations Act (“CBCA”) will be subject to new disclosure requirements relating to the diversity of directors and senior…
Read More