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Government announcement
19 January 2018

Minimum wage rises to $12 per hour – Improving the quality of life of low-income workers without harming businesses


https://www.facebook.com/LiberalQuebec/videos/1778844542148497/

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QUÉBEC CITY, Jan. 17, 2018 – The Government of Quebec has announced an increase in the general minimum wage rate. It will be raised by $0.75 to reach $12 per hour starting on May 1, 2018. This represents, in dollars, the largest increase in the minimum wage in Quebec’s history.

Dominique Vien, Minister responsible for Labour, Minister responsible for the Chaudière-Appalaches region and MNA for Bellechasse, explains that this raise fits into the framework of the four-year plan aiming for a ratio equivalent to 50% of the average hourly wage, without exceeding it, in 2020.

The situation is also explained by the vitality of the Quebec economy, which caused the average hourly wage to increase more rapidly than predicted.

Quote

In January 2017, we were bold and innovative when we announced a progressive increase in the minimum wage, one of the objectives being to ensure it was in line with Quebec’s economic situation. Quebec’s great economic performance enabled us to substantially increase minimum wage. As of May 1, 2018, minimum wage will be increased by $0.75 to reach $12 per hour. This increase will improve the quality of life of low-income workers, act as an employment incentive, increase net disposable income, and contribute to reducing the occurrence of poverty without harming employment or our businesses’ competitiveness.

– Dominique Vien, Minister responsible for Labour, Minister responsible for the Chaudière-Appalaches region and MNA for Bellechasse

Key points

  • Starting May 1, 2018, the general minimum wage rate will rise to $12 per hour (+$0.75), the minimum wage for workers receiving tips will increase to $9.80 per hour (+$0.35) and that of raspberry and strawberry pickers will increase to $3.56 (+$0.23) and $0.95 (+$0.06) per kilogram respectively.
  • When it announced the progressive increase of the minimum wage in 2017, the Government of Quebec also announced a four-year plan with the goal of reaching a ratio equivalent to 50% of the average hourly wage in 2020.
    • According to the 2017 predictions, the average hourly wage for 2018–2019 was expected to be $23.73. Minimum wage would then have been raised to $11.75 per hour (+$0.50) on May 1, 2018.
    • However, according to the latest available predictions, the average hourly wage will reach $24.25 per hour in 2018–2019. Raising the minimum wage to $12 per hour (+0.75) on May 1, 2018, will enable it the reach a ratio equivalent to that initially set for 2018–2019 and still be in line with the goal of reaching a ratio of 50% in 2020.
  • The $0.75 increase in the general minimum wage represents an increase of 6.67% compared to the current rate. This represents an annual increase in disposable income varying between $462 and $979 depending on the number of hours worked and the type of economic family (single parent, one child, two children, childless couple with one income).
  • This increase will benefit 352,900 employees: 214,300 women and 138,600 men.
  • On May 1, 2018, at $12 per hour, Quebec will have the third-highest rate among Canadian provinces, behind Alberta and Ontario.
  • According to the predictions by the Ministère des Finances, this minimum wage hike will increase the spending power of the employees concerned by 4.83 percentage points.
  • The four-year plan ensures that companies will be able to predict how much the minimum wage will rise until
  • The regulation was pre-published in the Gazette officielle du Québec this morning, with a 45-day consultation period.

Related link:

Video on the minimum wage increase methods