Photo: Quebec announces a notable minimum wage increase to $15.75 starting May 1, targeting economic stability in the retail and restaurant sectors amid uncertainties. (TF) Photo: Tashi Farmilo

With notes from Mary Baskin, Marie-Eve Turpin and Lily Ryan

In a move aimed at adjusting to the economic fluctuations, particularly in the retail and restaurant sectors, Quebec has announced a significant increase in its minimum wage. Starting May 1, the province will see its minimum wage rise by 50 cents an hour, reaching $15.75. This decision, as outlined by the Labour Department, is set to impact over 200,000 workers, with more than 111,000 of them being women.

Jean Boulet, the Labour Minister, highlighted the government’s cautious approach toward this wage increase. The adjustment, a little over three per cent, is intended to strike a balance between supporting low-income workers and not overburdening employers, especially those in the critical sectors of restaurant and retail. Boulet emphasized the potential negative effects of a rapid increase in the minimum wage on these industries.

This wage hike is designed to align with the government’s objective of maintaining the minimum wage at about half the average hourly pay for workers in Quebec. According to Boulet, the three per cent increase surpasses the province’s estimated inflation rate for the 2024-25 fiscal year, which stands at 2.3 per cent. He stated, “We have, with this minimum wage, a better percentage of our capacity to answer the essential needs of the low-income people,” during a recent press conference.

However, the increase has stirred concerns within the business community, worried about the potential strain on their finances due to the rising costs of raw materials and other expenses.

The government acknowledges these apprehensions but defends its decision as a necessary adjustment to keep pace with economic conditions and inflation. Boulet described the wage hike as “a big step,” marking the largest increase the province has seen in two decades.

The government’s stance reflects a delicate balancing act, aiming to support workers while considering the broader economic implications. As Quebec navigates through these uncertain times, the minimum wage increase represents a significant effort to ensure that low-income workers can meet their essential needs, despite the challenges posed by inflation and economic shifts.