Several Canadian provinces will increase their minimum wage rates this fall including Alberta, British Columbia, Ontario, and Saskatchewan. The minimum wage rate increases are based on annual changes in the Consumer Price Index (CPI). The CPI is used as an indicator of the change in the cost of living.
The minimum wage rate increases taking effect over the next month are significant. A comparison of 2015 minimum wage rates with 2016 minimum wage rates for provinces increasing this September/October are:
| Province | 2015 | 2016 |
| Alberta | $11.20 per hour | $12.20 per hour |
| British Columbia | $10.45 per hour | $10.85 per hour |
| Ontario | $11.25 per hour | $11.40 per hour |
| Saskatchewan | $10.50 per hour | $10.72 per hour |
British Columbia’s minimum wage rate increase takes effect September 15, 2016. The other provinces’ minimum wage rate increases are effective October 1, 2016. Other changes to watch for:
- In British Columbia, liquor servers’ minimum wage rate is $1.25 less than the general minimum wage rate – $9.60 per hour effective Sept. 15, 2016. Tips and gratuities do not count toward the minimum wage.
- The government of British Columbia is also committing to increase minimum wage to $11.25 per hour on September 15, 2017.
- This year, the Alberta liquor servers’ minimum wage rate is eliminated. The general minimum wage rate will apply to all employees who are entitled to minimum wage.
- Ontario’s liquor servers’ minimum wage rate will increase 10 cents to $9.90 per hour effective October 1, 2016. In June, an amendment to Ontario’s Employment Standards Act took effect establishing that tips and gratuities are the property of employees and may not be shared with their employers.
- The governments in other provinces periodically review their minimum wage rates to help ensure a minimum standard of living for employees.
Employers can ensure that all employees, managers and supervisors know about current employment-related rights and responsibilities by posting information in the workplace. Check for the updated provincial Labour Law Poster for your area to inform and protect your workplace.