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Government announcement
April 30, 2018

$12/hour minimum wage takes effect


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QUÉBEC CITY, April 30, 2018 – Dominique Vien, Minister responsible for Labour, Minister responsible for the Chaudière-Appalaches region and MNA for Bellechasse, would like to remind Quebecers that starting tomorrow, on International Workers’ Day, the general minimum wage rate will rise to $12/hour, which is a $0.75 increase. This is the largest minimum wage increase in the history of Québec.

Quote:

This significant increase in minimum wage is one of the positive effects of Québec’s economic vitality, which has led to the average hourly wage increasing more quickly than predicted. Through a four-year plan, the government is committed to reaching a ratio of 50% of the average hourly wage by 2020. This ensures that the minimum wage increase is predictable and that it reflects the development of the Québec economy. We are thus continuing our efforts to improve workers’ standard of living without harming employment or the competitiveness of businesses.

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

Key points

  • As of May 1, 2018, the general rate for minimum wage will increase to $12/hour (+$0.75), minimum wage for workers who receive tips will be $9.80/hour (+$0.35), and minimum wage for raspberry and strawberry pickers will be $3.56 (+$0.23) and $0.95 (+$0.06) per kilogram respectively.
  • According to 2017 forecasts, the average hourly wage for 2018-2019 was supposed to be $23.73. Minimum wage was thus supposed to rise to $11.75/hour (+$0.50) on May 1, 2018. However, according to the available forecasts, the average hourly wage was supposed to be $24.25/ hour for 2018-2019. An increase of minimum wage to $12/hour (+$0.75) on May 1, 2018, allows us to reach the ratio originally set for the year 2018-2019, and is in line with our aim to reach a ratio of 50% in 2020.
  • The $0.75 increase in the general rate for minimum wage represents a 6.67% increase compared to the current rate. This is an annual increase in disposable income varying from $462 to $979, depending on the hours worked and the type of economic family. For example:
    • A single person working 40 hours per week will see his or her annual disposable income increase by $859.
    • The annual disposable income of a household consisting of a single parent who has two children and who works 32 hours a week will go up by $589.
  • In both cases, disposable household income will be above the low-income threshold according to the market basket measure.
  • The increase will benefit 352,900 workers, or 214,300 women and 138,600 men.
  • With a minimum wage of $12/hour, as of May 1, 2018, Québec will have the third highest rate among Canadian provinces, behind Alberta and Ontario.

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