Nova Scotia Will Implement $15 Minimum Wage By 2024
HALIFAX—The Government of Nova Scotia has accepted a series of recommendations that will grow the province’s minimum wage to $15 an hour and guarantee minimum wage rises faster than inflation.
The province announced today it has accepted all the recommendations from the Minimum Wage Review Committee’s December report.
Those recommendations include a path to a $15-an-hour minimum wage by April 2024.
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Along with an initial bump to minimum wage, the committee also recommended a new formula that will see future minimum wage increases pegged to inflation, plus extra to account for economic growth.
In its report, the Minimum Wage Review Committee argues pegging minimum wage increases to inflation doesn’t do enough to help minimum wage earners keep up.
In Nova Scotia, from 1990 to 2019, the gap between average household income and inflation has gradually widened.
The economy tends to grow at a faster rate than inflation and that means minimum wage earners don’t get to share in that growth.
Pegging minimum wage to inflation lets people earning minimum wage keep up with the cost of living. But the committee argues the wage should be increased above and beyond inflation “to account for the ongoing economic growth of the province.
That means adjusting the minimum wage based on inflation, plus another one percent to account for economic growth.
The committee’s full plan, which the province has now accepted, looks like this:
- An increase to $13.60 per hour on October 1, 2022;
- An increase to $14.30 per hour on April 1, 2023;
- An increase to $14.65 on October 1, 2023;
- An increase to $15.00 per hour on April 1, 2024;
- Then, starting April 1, 2025, an annual adjustment based on the percentage change in the projected annual Consumer Price Index, plus an additional one percent.
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In a news release announcing the government’s new minimum wage plan, Minister of Labour, Skills, and Immigration Jill Balser said the gradual rise to $15 an hour is a good way to balance the needs of workers and businesses.
“Working Nova Scotians deserve to be paid a fair wage. I also recognize many businesses have had a difficult time during the pandemic. That’s why it’s so important to take a balanced approach that supports both employees and employers,” she said.
“These increases will help minimum wage earners and their families, as well as provide businesses with an outlook, so they can plan ahead.”
Patrick Sullivan is the president and CEO of the Halifax Chamber of Commerce. He says very few people will argue against a $15 minimum wage. However, he argues higher wages do come with consequences, especially for businesses already hammered by increased costs and pandemic-related restrictions.
“I think the only thing the business community would be concerned about is they are seeing many, many increased costs. This year we saw CPP going up, we’re seeing inflationary increases on the products that many businesses are purchasing that they would sell to their customers, whether in restaurants or hotels.”
“Costs are going up already and this will be one more cost,” Sullivan adds. “Ultimately, many of these costs will be passed on the consumer and I hope the consumer is ready for these increased costs and accepts these increased costs.”
Trevor Nichols is the associate editor of Huddle, based in Halifax. Send him your feedback and story ideas: [email protected].