Manitoba’s hourly minimum wage ticks up 20 cents

Manitoba was among five provinces that increased their minimum wage Wednesday, all tied to Canada’s steadily growing consumer price index.

Manitoba’s minimum wage increased by 20 cents to $16 per hour. It is updated annually Oct. 1 and regulated through the Employment Standards Code. The adjustment reflects Manitoba’s 2024 inflation rate of 1.1 per cent, rounded up to the nearest five cents.

Despite the annual move being tabbed as supporting workers amid affordability issues, the news drew mixed reactions.

“Raising the minimum wage by just 20 cents this year will leave workers falling behind the cost of living,” said Niall Harney with the Canadian Centre for Policy Alternatives (Manitoba).

He said the inflation rate in Manitoba was lower than the rest of the country in 2024 because of the NDP government’s gas tax holiday. The 14-cents-per-litre fuel tax was suspended throughout 2024. In January, the province reimposed a reduced gas tax of 12.5 cents/L.

Harney said Manitoba food costs and rent increased by 3.3 per cent and 4.9 per cent, respectively, in 2024 and have continued to rise this year.

“A 1.1 per cent increase to the minimum wage is not compensating for the actual rise in the cost of living for workers,” he said. “The current formula for increasing the minimum wage, set by the previous government, will never bring workers above the poverty line because the minimum wage was frozen when the formula was first introduced and because it lags behind actual prices. The government should be looking to update this formula.”

In Manitoba, close to one in four workers earns between the minimum wage and a living wage, he added.

Minimum wage hikes alone won’t fix affordability, said Brianna Solberg, Canadian Federation of Independent Business regional director of legislative affairs.

“Small businesses need tax relief and workers need policies that tackle housing, fuel and food costs directly, not just bigger paycheques eaten up by rising prices,” she said Wednesday.

While it’s only a 20 cents/hr increase, even small hikes can impact small businesses already facing rising input costs, economic uncertainty from trade disputes and supply chain disruptions due to postal strikes, Solberg said. “Wage hikes, even modest ones, can create ripple effects.”

Most Manitoba small businesses already pay above minimum wage, but regular increases like Wednesday’s often lead to higher wages across the board, forcing many to raise their prices, reduce hiring or cut staff hours, she added.

“That makes it harder for businesses to grow and for young or entry-level workers to gain experience.”

Starting Wednesday, Ontario’s minimum wage is now $17.60/hr, Nova Scotia’s and Prince Edward Island’s are $16.50/hr and Saskatchewan’s is $15.35/hr.

British Columbia, Quebec, New Brunswick and Newfoundland and Labrador raised their minimum wage earlier this year.

Alberta is the only province that has not boosted its minimum wage, with its $15/hr rate now the lowest in Canada.

— with files from The Canadian Press

carol.sanders@freepress.mb.ca