British Columbia’s minimum wage, which is the lowest in Canada, is going to get a boost.
The increase in the minimum wage will bring the province up to seventh place and will come in two stages over the next two years with the first increase set at 40 cents, bringing the rate up to $10.85 an hour, effective Sept. 15.
A second increase of 30 cents (plus an estimated 10 cents for inflation) will be effective Sept. 15, 2017 and bring the minimum wage rate to $11.25 an hour.
The current minimum wage in British Columbia is $10.45 an hour and liquor servers receive $9.20 an hour.
The minimum wage rate for liquor servers will also increase by the same amounts and on the same dates as the general minimum wage. The daily rate for live-in home support workers, and the monthly rate for resident caretakers and farm workers, will increase proportionately to the general minimum hourly wage increases and timelines.
The B.C. Federation of Labour (BCFED) would like to see the provincial government raise the minimum wage to $15 an hour in order to ensure a person working full-time and earning the minimum wage can live above the poverty line.
“People who are living on that minimum wage will continue to struggle, they will continue to have a difficult time, they will continue to find it very hard to have a modest level standard of living on the increase we saw today,” said Shane Simpson, Vancouver-Hastings MLA and NDP opposition critic for Economic Development, Jobs, Labour and Skills.
According to a 2014 Labour Force Survey by Stats Canada, there are 509,400 working people in B.C. earning less than $15 per hour. Sixty per cent of those people are women and 82 per cent are 20 years old or older.
According to the province, the two increases are due to the expectation of B.C. leading the country in economic growth this year and next.
“B.C.’s economy is expected to lead the country in economic growth this year and next,” Minister of Jobs Shirley Bond said in a statement.
“We want to strike a balance where we bring the minimum wage into line with our strong economy. That is why these two increases to the minimum wage will help those earning minimum wage while not impeding businesses’ ability to grow, innovate and hire British Columbians.”
Along with the increase in the province’s minimum wage, the B.C. government is also committing to reducing the small business tax rate by 40 per cent by the year 2017/2018. This change would mean a small business that is incorporated with $100,000 in active business income would see their taxes decrease by $1,000 annually.
While small businesses may be getting a break in taxes, the increase in B.C.’s minimum wage is getting panned by the Canadian Federation of Independent Business (CFIB).
In a statement, the CFIB said the “higher than expected hike… will leave many small business owners with entry-level jobs scrambling to afford a significant increase in their payroll.”
According to the CFIB, adult workers, when hours of work are included, almost one in three business owners are earning $15 an hour or less, compared to one in five paid employees. The incomes, states CFIB, of business owners in the hospitality and retail sectors are even more modest.
“Many business owners, especially those in the service sector, operate in highly competitive markets and on razor-thin profit margins. They are not sitting on a mountain of money. Obviously, they will have to make a series of major operating adjustments, including cutting jobs and hours, in order to accommodate such a large jump in payroll costs,” Richard Truscott, CFIB vice president for B.C. and Alberta said.
Comments