MONTREAL – The minimum wage in Quebec will increase from $13.50 to $14.25 an hour starting May 1.
The Minister of Labour, Employment and Social Solidarity, Jean Boulet, made the announcement on Friday.
The increase affects around 301,000 workers, including 166,000 women workers, in sectors such as retail and restaurants.
For tipped employees, the minimum wage will increase from $10.80 to $11.40.
In an interview with The Canadian Press on Friday, the minister stressed that he was thus respecting his target of keeping the minimum wage at around 50% of the average hourly wage. This one would be $28.47 according to predictions.
Minister Boulet believes that a minimum wage of $14.25 an hour is “a good balance” between the various economic and social factors that must be weighed.
“We must take into account the impact that the pandemic may have had on many SMEs in Quebec, which had to face extremely important issues in terms of maintaining or increasing their economic growth. It must also be important enough to encourage work. At the same time, it must not cause school dropouts. I think we find a good balance,” commented Minister Boulet.
The major labor organizations, which had been demanding for a few years to raise the minimum wage to $15, have since raised their demand to $18 an hour. They maintain that $18 an hour represents a minimum for a dignified life.
Asked about this, the minister said he preferred to go gradually. “We’re going step by step.” From $14.25 per hour on May 1, 2022, he believes he can raise it to $15 per hour on May 1, 2023, taking into account the economic strength of Quebec.
Ontario has already raised its minimum wage to $15 an hour on January 1st.
Minister Boulet objects that Quebec still does well in Canada in terms of disposable income, thanks to its social safety net, its subsidized childcare services and the tax credit for social solidarity, in particular.
Moreover, the scarcity of labor in several sectors of economic activity has already put upward pressure on wages. Many employers have had to raise the wages they pay their employees or improve their working conditions in other ways to retain or attract them.
SME: “it will hurt”
“It is certain that it will hurt businesses. We are in a situation where the majority of companies are below their normal income” because of COVID-19, recalled in an interview François Vincent, vice-president for Quebec of the Canadian Federation of Independent Business.
And that’s on top of an average debt load of $100,000 per SME and payroll taxes, he notes. “We believe that the government should help small businesses, in particular by reducing payroll taxes.”
Mr. Vincent says he is still “relieved” that the increase did not reach $18 an hour, as claimed by the labor organizations. It would have been “catastrophic” for SMEs, he believes.