Update by: Meaghan J. McWhinnie
On March 31, 2016, British Columbia became home to the lowest minimum wage in Canada at $10.45 per hour. However, that is set to change through two upcoming increases to the province’s minimum wage rate.
Last year, the B.C. government announced that it would index the minimum wage to the Consumer Price Index (CPI). Based on the province’s 2015 CPI, the minimum wage this year was set to increase by 10 cents per hour. However, with British Columbia expected to lead the country in economic growth this year and next, the government has now announced an increase to the minimum wage rate beyond the province’s CPI indexed amount.
The BC government will increase the minimum wage in two stages:
- Effective September 15, 2016: The first increase of 40 cents will take effect and bring the minimum wage rate to $10.85 per hour. This new rate includes the 10 cents scheduled for the 2015 CPI, plus an additional 30 cents.
- Effective September 15, 2017: A second increase of 30 cents plus an amount based on the 2016 CPI (estimated to be 10 cents) will take effect and bring the minimum wage rate to $11.25. The minimum wage rate for liquor servers will increase by the same amounts and on the same dates as the general minimum wage. The differential of $1.25 between the general minimum wage and liquor server minimum wage will continue to apply.Employers paying the minimum wage will need to increase their wage budgets and consider labour efficiencies. Employers will also have to consider increases to employees earning near minimum wage, such as supervisors and lead hands, to ensure appropriate wage differences are preserved.
- The daily rate for live-in home-support workers and live-in camp leaders as well as the monthly rates for resident caretakers and the farm-worker piece rates will also increase in amounts proportionate to the general minimum hourly wage increases.
- The 2016 CPI will be available from Statistics Canada by March 2017.
