Five provinces are raising minimum wage. Here’s what you need to know

A worker is shown at Thai Express at a food court in Montreal on Dec. 2, 2024. (Christinne Muschi / The Canadian Press)

Five provinces are increasing the minimum wage on Oct. 1 to support workers and businesses.

The hikes will apply in Ontario, Manitoba, Saskatchewan, Nova Scotia and Prince Edward Island. The provinces are increasing wages as Canadians struggle with high living costs. Jurisdictions tie their hikes to the Consumer Price Index or have their own approaches.

Here’s how much the minimum wage is increasing in the following provinces:

-Ontario: $17.60 per hour, up 40 cents from $17.20

-Prince Edward Island: $16.50 per hour, up 50 cents from $16

-Nova Scotia: $16.50 per hour, up $1.30 this year

It will be the second hike this year. The rate was previously raised to $15.70 from $15.20 on April 1.

-Manitoba: $16 per hour, up 20 cents from $15.80

-Saskatchewan: $15.35 per hour, up 35 cents from $15

Employers in the five provinces need to comply with the new standards that will affect areas such as payroll systems, employment contracts and job postings, according to Charlie Herrera Vacaflor, a senior employment law consultant at HR consultancy firm Peninsula Canada, in a press release.

All jurisdictions have raised their rates, or plan to do so, this year except Alberta. The hikes will make Alberta the province with the lowest pay rate in the country. Alberta hasn’t changed its rate of $15 an hour since 2018. The province has been paying students under 18 a different rate at $13 an hour since 2019.

Despite the boost in minimum wages, affordability remains a problem, particularly in big cities such as Toronto and Vancouver. Residents in those cities need to earn about $37 an hour, or more than $78,000 a year, for the average rent on a one-bedroom apartment to be considered affordable, according to a report by the Canadian Centre for Policy Alternatives published earlier this month.

With files from The Canadian Press