The minimum wage for several Canadian provinces has increased on October 1, 2023, with the impacted provinces including Ontario, Manitoba, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, and Saskatchewan. Accordingly, businesses that have employees who earn minimum wages in one or more of these provinces should ensure that they are paid at an hourly rate that is equal to or greater than the new minimum wage for the province(s) in question.
An overview of the changes to the minimum wage for each of the six provinces is set out below. Impacted employers should ensure that they comply with the new minimum wage requirements sooner rather than later, because failure to do so may result in fines and/or penalties under employment standards legislation, negative publicity, reputational damage, lower employee morale, and increased employee turnover.
Ontario
General Minimum Wage
Effective October 1, 2023, Ontario’s general minimum wage increased by 6.8% from $15.50 per hour to $16.55 per hour. This minimum wage applies to all non-exempt employees working in Ontario, other than three types of employees that are each subject to special minimum wage rates, as set out below.
Special Minimum Wage Rates
All three special minimum wage rates in Ontario also increased by 6.8% on October 1, 2023. First, the special minimum wage rate for students under the age of 18 who work 28 hours a week or less increased from $14.60 per hour to $15.60 per hour. Second, the special minimum wage rate for “homeworkers” (i.e., employees who do paid work out of their own homes for their employers) increased from $17.05 per hour to $18.20 per hour. Third, the special minimum wage rate for hunting, fishing, and wilderness guides increased from $77.60 per day to $82.85 per day for when they are working less than five consecutive hours in a day, and from $155.25 per day to $165.75 per day for when they are working five or more hours in a day.
Manitoba
Manitoba increased its minimum wage for a second time this year on October 1, 2023, from $14.15 per hour to $15.30 per hour. The province previously increased its minimum wage on April 1, 2023 from $13.50 per hour to $14.15 per hour. Thus, the overall increase to the minimum wage in Manitoba this year was $1.80 per hour, which is a total increase of 13.3%.
Nova Scotia
Effective October 1, 2023, Nova Scotia’s minimum wage increased from $14.50 per hour to $15.00 per hour. Like Manitoba, this is the second increase to Nova Scotia’s minimum wage this year, with it previously increasing from $13.60 per hour to $14.60 an hour on April 1, 2023.
Notably, these increases were made to the province’s general minimum wage, as well as the minimum wages applicable to the construction and property maintenance industry and the logging and forest operations industry.
Newfoundland and Labrador
Newfoundland and Labrador’s minimum wage increased for a second time this year on October 1, 2023, from $14.50 per hour to $15.00 per hour. The province’s minimum wage was previously increased earlier in the year on April 1, 2023, from $13.70 per hour to $14.50 per hour. Thus, the overall increase to the province’s minimum wage this year was $1.30 per hour, or 9.4%.
Prince Edward Island
Effective October 1, 2023, Prince Edward Island’s minimum wage increased from $14.50 per hour to $15.00 per hour, which is the second increase to the province’s minimum wage this year. PEI previously increased its minimum wage from $13.70 per hour to $14.50 per hour on January 1, 2023. Therefore, the overall increase to PEI’s minimum wage this year was $1.30 per hour, or 9.4%.
Saskatchewan
Saskatchewan increased its minimum wage from $13.00 per hour to $14.00 per hour on October 1, 2023, representing an increase of 7.6%.
Notably, the province’s minimum wage is currently slated to be increased again on October 1, 2024, up to $15.00 per hour.
The Bottom Line
As noted above, it is crucial for impacted employers to pay their employees at an hourly rate that is at least equal to the minimum wage for the province in which the employees work, to avoid legal liability and negative operational impacts on their businesses. Moreover, failure to comply with the new minimum wage rates can lead to greater scrutiny from employment standards officers, which may result in them discovering other non-compliance issues, resulting in even greater legal liability.
If you have any questions regarding the various employment standards requirements that apply to your business, or if you require any assistance with ensuring that you are in compliance with legilsation, please do not hesitate to contact us for expert legal advice and guidance.
