Minimum Wage in Quebec Rises to $16.60 Per Hour Starting May 1
Effective May 1, 2023, the minimum wage in Quebec will increase from $16.10 to $16.60 per hour. This change marks a 50-cent rise, equating to a 3.1% increase. Approximately 258,900 workers across various sectors, including retail, will benefit from this adjustment.
Minimum Wage for Tipped Workers
Additionally, the hourly wage for employees who earn tips will rise from $12.90 to $13.30, also reflecting a 3.1% hike. This change aims to assist workers in enhancing their purchasing power amid ongoing inflation.
Government’s Rationale
During an interview with El-Balad, Quebec’s Labor Minister Jean Boulet expressed satisfaction with the wage increase. He emphasized that the adjustment strikes a balance between protecting workers from inflation and maintaining small and medium enterprises’ ability to pay. Boulet stated, “This will help protect, and even slightly increase, the purchasing power of minimum wage workers while ensuring businesses can remain competitive.”
Higher Increase Than Anticipated Inflation
The 3.1% increase surpasses the anticipated 1.97% inflation rate projected by the Ministry of Finance for the same period. The government aims to set the minimum wage at approximately 50% of the average hourly wage, ensuring alignment with salary growth in Quebec.
Business Community Response
The Canadian Federation of Independent Business (CFIB), representing small and medium enterprises, welcomed the increase. They expressed relief that the government did not meet calls to raise the minimum wage to $20. However, various social and labor groups continue to advocate for reaching that $20 threshold, citing the need for a livable wage amidst rising living costs, particularly food and housing.
Financial Impact on Businesses
- The annual cost increase for employing a minimum wage worker will amount to $1,197, including $157 in payroll taxes.
- This increase adds to the escalating costs faced by Quebec’s SMEs, which have already experienced significant financial pressure over the past year.
The CFIB reiterated the necessity for tangible measures to alleviate the fiscal burden on small businesses, particularly in light of increasing payroll expenses.
