The Quebec government is increasing the province’s minimum wage to $11.25 from $10.75, about a five per cent increase.
Labour Minister Dominique Vien made the announcement in Quebec City Thursday morning.
READ MORE: Quebecers march for $15 minimum wage
In October, hundreds of Quebecers – including union members, anti-poverty activists and students – gathered in Montreal to march for a $15 minimum wage in the province.
Protesters argue Quebec’s $10.75 minimum wage is borderline poverty and it needs to change.
“The cost of living is getting always more expensive,” Mathieu Proulx, a maintenance worker at the Old Port, told Global News at the protest.
“By raising the salaries, people will have more money to pay their rent, buy things and have savings.”
READ MORE: A look at minimum wages across Canada
Nevertheless, the government insisted a $15 minimum wage would be catastrophic for businesses.
“We will also continue to provide fiscal relief to small businesses,” said Finance Minister Carlos Leitao.
“We were going to do that in any case. We’ve started doing that in June 2014 in our first budget, especially putting an emphasis on lowering payroll taxes.”
Leitao said he consulted with labour unions and business groups, explaining the proposed increase would be around 47 per cent of the average wage in Quebec.
Their objective is for minimum wage to be 50 per cent in the next four years, through small incremental increases each year.
READ MORE: Old Port of Montreal union looks to raise minimum wage to $15 in Quebec
Leitao explained anything more than 50 per cent is dangerous for the financial health of small businesses.
The hike will be effective May 1.
It is expected to increased again by 2020.
— with files from Global’s Raquel Fletcher and The Canadian Press.