N.S., P.E.I. increasing minimum wage to $16.50 starting Oct. 1

The minimum wage has gone up in Prince Edward Island and Nova Scotia.

The minimum wages in Nova Scotia and Prince Edward Island went up to $16.50 per hour on Wednesday.

For Nova Scotia, the minimum wage is going up by 80 cents from $15.70. This is the second increase this year for the province, bringing the total increase for 2025 to $1.30.

“Affordability continues to be a priority for our government,” said Nolan Young, minister of Labour, Skills and Immigration. “Increasing the minimum wage twice this year will help to put more money in the pockets of thousands of workers and help them manage the rising cost of living.”

Regulations for minimum wage require an update every year on April 1 based on the consumer price index for the previous year, plus an extra one per cent.

“The additional increase on October 1 this year responds to concerns about the rising cost of living,” a news release from the province reads.

About 40,000 workers (which covers roughly 7.7 per cent of the labour force) in Nova Scotia earn minimum wage.

Alexander Stephen is the owner of Apartment 3 café in Halifax. He says his staff all make more than minimum wage, but over the years, they’ve had to rely on fewer staff.

“I think we had 20 staff and now we have to be down to 12. I mean everyone’s getting paid more, but there’s less jobs to go around,” said Stephen.

When it comes to employing those who are just starting out in the work force, Stephen says it’s even trickier.

“Need someone there to kind of teach them how to sweep, how to clean every little thing. Well, we really can’t afford to pay them a high wage and pay someone to watch them and teach them and train them,” he said.

The Canadian Federation of Independent Business says half of its members can’t take on the higher cost.

“Pass it on in the form of higher prices for consumers. That’s the last thing they want to do but just with the ongoing economic uncertainty and the razor-thin margins, that’s the reality for many small businesses,” said Duncan Robertson, director of the Canadian Federation of Independent Business.

While big corporations may be able to absorb the hike, Roberston says the independents are struggling to stay competitive.

“We really want to see government step up,” said Robertson. “Consider expanding the personal basic among which salary is exempted from taxation or look at targeted support for housing benefits and things like that.”

P.E.I. increase

Last April the P.E.I. government announced the minimum wage would go up from $16 to $16.50 on Oct. 1.

The rate is then expected to go up to $17 on April1, 2026.

-With files from CTV News Atlantic’s Sean Mott

For more Nova Scotia news, visit our dedicated provincial page