With federal minimum wage rising, will Alberta follow? Nope

Scraping by on the bare minimum Minimum wage for federal employees is increasing on April 1, but don't expect to see any change in Alberta's base rate.

The federal minimum wage is increasing to $17.30 per hour from $16.65.

However, Alberta’s $15 per hour, soon to be the third-lowest in the country behind Saskatchewan at $14 per hour, will not change.

“We understand the inflationary pressures many Albertans are experiencing right now,” read a statement from jobs minister Matt Jones’ office.

“We also recognize the significant impacts of potential changes to the minimum wage, including to workers, small businesses and costs which are ultimately flowed through to all Albertans. Alberta’s government is constantly and carefully evaluating the appropriateness of the current minimum wage.”

Alberta last increased the minimum wage on Oct 1, 2018, and it has been frozen ever since.

In 2023, in Alberta, 126,000 employees earned minimum wage.

The statement adds that Albertans keep more money in their pockets due to low provincial income tax and no sales taxes.

FEDERAL CHANGE IMPACTS 30K EMPLOYEES

The federal change will impact about 30,000 employees in the federally-regulated private sector.

Should the provincial or territorial minimum wage rate exceed the federal rate, employers must pay the higher of the two.

"Everyone's feeling the pinch of inflation, so wages must keep up with the cost of living," said Seamus O'Regan, Minister of Labour and Seniors.

Meaghon Reid, executive director of Vibrant Communities Calgary says 85 per cent of people on minimum wage in Calgary are adults, with 38 per cent kids under the age of 18.

“So the people making minimum wage, we're talking about families, people who are striving to own a home or home owners,” she said.

Reid adds that for someone to consider earning a modest wage in Calgary and not stress paying the bills, they must make at least $23.60 per hour as a living wage.

“This is not people who are living a lavish lifestyle,” said Reid.

“This is how we've calculated it, so that you can live a modest standard of living so that you can get a Netflix account or a parkpass but not really take a lavish vacation.”

The Government of Canada introduced the federal minimum wage in 2021.

As of Apr 1, 2024, Newfoundland and Labrador will increase its minimum to $15.60 per hour, Yukon will see an increase to $17.59 per hour.

P.E.I will rise to $16 per hour later this year, Quebec will bump up to $15.75 per hour in May and B.C. will rise to $17.40 come June 1.