Five provinces are raising the minimum wage on October 1st: here’s what will change in your paycheck
Starting October 1, five Canadian provinces will raise their minimum wage: Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island. The increases range from 1.5% to 2.5% and are directly tied to each province’s inflation rate, at a time when rent, the market, and basic services continue to cost more than they did two years ago.
What are the new rates?
Ontario goes from $17.60 to $17.95 per hour; Manitoba from $16.00 to $16.40; Saskatchewan from $15.35 to $15.70; Nova Scotia from $16.75 to $17.00; and Prince Edward Island from $17.00 to $17.30.
Why are these five provinces specifically rising and not all of them at the same time?
Each province sets its own schedule and adjustment formula. Ontario links the increase to the growth in the consumer price index (1.9% this year); Saskatchewan uses a formula that weights inflation and the change in average hourly wages equally; and Nova Scotia adds an extra percentage point above the national inflation rate. Other provinces, such as Alberta and Quebec, have their own schedules and do not adjust on this same date.
How does this compare to the federal minimum wage?
The five new values are still below the federal minimum wage of $18.15 an hour, which only applies to sectors directly regulated by Ottawa, such as banking, telecommunications and interprovincial transportation — a small portion of total jobs in the country.
What does this mean for the newly arrived immigrant?
Many newcomers—including a significant number of Latinos who come to work in retail, hospitality, cleaning, or warehousing—begin their working lives in Canada in jobs that pay close to the minimum wage while they gain Canadian experience or validate their credentials. An increase of 25 to 40 cents per hour doesn’t alleviate the pressure of the cost of living, but for full-time work, it translates to an extra $40 to $80 per month in their paycheck, a welcome relief just before winter and the heating bills arrive.
Writing by Mauricio Navas Talero LJI Reporter