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People who work for minimum wage in Saskatchewan are getting a raise.
The provincial government announced Tuesday that on Oct. 1, the minimum wage will increase from $11.81 per hour to $13 per hour. That hike will be followed by increases on Oct. 1, 2023 (to $14 per hour) and Oct. 1, 2024 (to $15 per hour).
Premier Scott Moe hinted Monday the minimum wage could be rising in the province.
“We look at it as adopting a balance between what the businesses need and what is reasonable for the employees. And given what has happened with the inflationary cycle the last number of months, we think this is a reasonable approach to take,” said Don Morgan, the minister of labour relations.
Because of market pressures, Canada’s inflation rate in March jumped to a new 31-year high of 6.7 per cent.
According to the Retail Council of Canada, Saskatchewan currently has the lowest minimum wage in the country.
Nunavut leads the way at $16 per hour, followed by Yukon ($15.70), Northwest Territories ($15.20), British Columbia ($15.20), Alberta ($15), Ontario ($15), Quebec ($14.25), Prince Edward Island ($13.70), Nova Scotia ($13.35), Newfoundland and Labrador ($13.20), New Brunswick ($12.75), Manitoba ($11.95) and Saskatchewan ($11.81).
If all of those hourly wages remain the same between now and Oct. 1, Saskatchewan will still have the third-lowest minimum wage among the provinces and territories after its increase.
Morgan said he doesn’t have a calculated reason for why $15 was chosen, but said it seems to be the goal of most other jurisdictions.
“It seems to be a reasonable approach to take and it should be workable for businesses,” said Morgan.
However, the minister also said he doesn’t feel Saskatchewan is in competition with other provinces, saying Saskatchewan is one of the most affordable provinces in which to live.
“I think we look at cost of living in our province (and) the changes that we’ve made to tax rolls … We look at what our utility rates are,” said Morgan.
The Saskatchewan NDP applauded the increase — the party has been calling for a $15 minimum wage in the province for years — but also said the living wage in Saskatchewan has increased and $15 isn’t enough now or in 2 1/2 years.
The provincial government’s media release said the planned increases over the next three years “reflect a market adjustment, rather than using the province’s traditional indexation formula.”
That formula gives equal weight to changes to the Consumer Price Index and the average hourly wage for Saskatchewan. The planned increases, the government said, will align workers’ pay with changing market forces.
“As we continue to grow Saskatchewan, we want to attract quality investments and jobs so that all citizens can benefit,” Morgan said in the release. “Making this change to the minimum wage is a step in that direction.”
