CALGARY—Paycheques for Alberta’s hospitality workers will soon be under a microscope thanks to a new Alberta government panel looking at the effects of minimum wage increases … The minimum pay in Newfoundland & Labrador is currently set at $11.40 which is the second lowest in Canada. The CPI increase in 1998, however, was only the 21st highest increase, and the 2018 increase was the 13th highest. The increase will be incremental, starting with a new minimum wage of $10 on September 30, 2021, and increasing $1 per hour each year until September 30, 2026. First, the minimum wage increased by 417% during this 40-year period. And I found no connection between the two. To calculate whether an employee earning incentive-based pay or commission has received a rate of at least minimum wage for all hours worked in a pay period, the employer must determine if the minimum compensation entitlement has been met. I compared 40 years of data for inflation and minimum wage increases in Alberta. Casual babysitting isn’t considered domestic employment. However, there will be increases in four different stages coming between April 1, 2020 and October 1, 2021.. First, the rate will go up to to $11.65 on April 1, 2020. Pro 1 Raising the minimum wage would increase economic activity and spur job growth. One reports averages actual reported wages; the other simply divided total compensation paid out in Alberta over the year divided by total hours worked in Alberta over the year. Increasing minimum wage isn’t what drives inflation. These graphs show the amount of change in CPI and minimum wage since 1979. The index is based on Statistics Canada's annual survey of employment, payroll and hours. Take a look at the period between the minimum wage increase in 1986 and the increase in 1998. Sorry, your blog cannot share posts by email. Subject to any limitations that may apply as a result of an individual contract of employment or an applicable collective agreement, if a student is already working and making $15/hour or more, the employer may choose to reduce their wage to as low as $13/hour, but not lower. Profit is built into the price tag of every product and service a company sells. Mandatory measures in effect provincewide. The minimum wage for students under 18 is $13/hour as of June 26, 2019. Even if we bumped up minimum wage tomorrow by another dollar, more than 85% of workers would be unaffected by the increase. And in that case, you probably would increase prices to offset the increase in costs. Part 2 of the Employment Standards Regulation sets the minimum wage for employees. Employees entitled to the weekly minimum wage rate earn $598 per week. Employers can still choose to pay students more than this minimum wage. As a first step, Alberta’s minimum wage increased by $1 to $11.20 per hour and the liquor server minimum wage increased by $1.50, from $9.20 to $10.70 per hour, effective October 1, 2015. If an employee works for fewer than 3 consecutive hours, the employer must pay wages that are at least equal to 3 hours at the minimum wage. In anticipation of the results, and in response to some recent social media conversations I’ve had, I thought I’d review some information regarding minimum wage in Alberta. Alberta’s minimum wage as of this writing is $11.20/hr. See Payment of earnings for more information. This 3-hour minimum doesn’t apply if the employee isn’t available to work the full 3 hours. CPI, on the other hand, went up by 278%. This site uses Akismet to reduce spam. Most workers earning minimum wage in Alberta tend not to live in low-income families Based on data from a special tabulation by Statistics Canada using the Canadian Income Survey (Statistics Canada, 2018b), in 2015, the latest year of available income data, 8.0% of minimum wage earners in Alberta … Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Tumblr (Opens in new window), Click to share on Pinterest (Opens in new window), Click to email this to a friend (Opens in new window), Conservatives prefer short-term solutions, UCP appoint oil and gas executive to oversee electricity operator, Alberta announces partnerships for 170 parks, Trudeau government announce $5.6M for Alberta tech & health companies, Survey: Disconnect between SW Alberta jobs and job seekers, Federal NDP at highest support according to new poll, High SCS usage linked to low deaths and EMS responses, Alberta awards 11 coal leases in SW Alberta for $36 a hectare, Alberta led Canada in pot sales during COVID-19 lockdown. The current general minimum wage applies to all employees, with the exception of students under 18. A company pays dividends to its shareholders out of its profits. That was the largest CPI increase during that 40-year period. Given that the population of Alberta in 2014 was 4,120,897, that’s $7,597.00 per each Alberta resident that these 250 companies charged for their products and services above the cost to produce them. For employees who live in their employer’s home: For employees who don't live in their employer’s home: The following employment standards don’t apply to domestic employees: Employees must be paid for at least 3 hours of pay at the minimum wage each time they’re required to report to work, or come to work for short periods. Plus, in the years that saw the largest increases in minimum wage, the CPI didn’t reciprocate with their largest increases. Liquor server rate of $10.70 per hour is … Between May 2015 and April 2019, when the NDP was the governing party in Alberta, the minimum wage increased from $10.20 to $15.00, or $4.80, the largest increase over a 4-year timeframe. CPI, or the Consumer Price Index, compares, over time, the cost of a fixed basket of goods and services purchased by consumers. In total, they paid out $31.7 billion collectively, or an average of $3.5 billion per year. In all circumstances an employer must tell the employee that they are going to reduce the employee's wage before the start of the pay period when this lower wage would take effect. 3. Minimum wage increase in Alberta Alberta’s lowest pay permitted by law has expanded each year since 2015, turning into the most noteworthy in the nation when it came to $15/hour last October. 217 people receive my monthly newsletter. The scheduled increases may be temporarily suspended by the Governor, based on certain determinations. Inflation appears to occur regardless of whether minimum wage increases. The minimum wage will increase an additional $0.25 on October 1, 2021. And if both the cost of living and minimum wage increased, it’s easy for some people to make the connection that one must have caused the other. This increase is now the highest minimum wage in the country. I live in Lethbridge with my spouse and 4 of our 6 children. I’m a writer, focusing on political news, social issues, and the occasional poem. ” The average Alberta worker made $40.60 an hour in 2019 25 August 2020 ” Put another way, these companies each charged, on average, $700 million more every year for their products and services than it cost them to produce those products and services. This wage increase is the final stage of a plan set out by the NDP in 2015 promising to raise the minimum wage from the previous rate of $10.20 per hour. But even if increasing product prices is the only option for that one company, is that enough to trigger increases across the entire economy? Disclaimer: In the event of any discrepancy between this information and Alberta Employment Standards legislation, the legislation is considered correct. These are two different datasets. Now let’s look at inflation. Statistics Canada notes that "youth, women and persons with a low level of education were the groups most likely to be paid at minimum wage." commission salesperson (other than a route salesperson) selling goods that will be delivered later, car, truck, recreational vehicle, or bus salesperson, heavy duty construction equipment or road construction equipment salesperson, residential home salesperson employed by builder. Also, increases in the minimum wage will actually redistribute income among poor families, where some are given higher wages and others are put out of work. 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