Minimum wage rising in Manitoba

Manitoba’s minimum wage is going up in the fall, but some labour advocates say the increase falls short.

Minimum wage is set to rise in the province, but labour advocates say the hike falls short of helping working Manitobans to meet their basic needs.

The province announced Wednesday the provincial minimum wage will increase by 40 cents per hour from $16 to $16.40 effective Oct. 1.

Manitoba’s minimum wage is updated annually and is regulated through the Employment Standards Code.

The province said this year’s increase reflects Manitoba’s inflation rate rounded up to the nearest five cents.

Still, the Manitoba Federation of Labour (MFL) warns that increase is not enough, citing data from the Canadian Centre for Policy Alternatives that finds Winnipeg workers need to earn $19.77 an hour just to meet their basic needs.

“Manitoba has a working poor problem,” MFL President Kevin Rebeck told CTV News.

“Over 40,000 workers make minimum wage in our province, and they live below the poverty line. They don’t make enough to maybe meet their basic needs. That needs to change.”

The increase follows a formula set in provincial law by the previous Progressive Conservative government that is tied to the rate of inflation of the previous calendar year.

Rebeck called on the Kinew government to change the law to allow larger minimum wage increases.

“We’ve certainly been raising it with government, and we’ll continue to do so.”

Costs ‘continue to add up’ for small businesses

Meanwhile, small business advocates have a different take.

Canadian Federation of Independent Business (CFIB) senior policy analyst Tyler Slobogian said the law provides some certainty for business owners who are already dealing with plenty of unknowns, be it rising inflation, hydro and tax rates.

“Many are looking to hire more people. They want to grow, they want to expand, but at the end of the day, all of these costs continue to add up for them, and it makes them a very difficult situation for them,” he said.

He estimates raising the minimum wage to a living wage would put roughly 600,000 small businesses across the country on the brink of closure.

He argues there are other ways to help working Manitobans make ends meet, like allowing employees to take home more of their pay by raising the basic personal amount and lowering personal income tax rates.

“I think there’s other relief measures that we should see rather than the most dramatic change first.”

When asked if her government would consider legislation changes to allow larger hikes, Manitoba Labour and Immigration Minister Malaya Marcelino noted the NDP has already raised the minimum wage four times since taking power in 2023.

She added that the 2026 budget included a number of big-ticket items aimed at making life more affordable, like increased rent controls, homeowner tax credits and removing the PST on grocery items.

“There’s a lot that we’re doing to try to respond to Manitobans who are facing this affordability crisis,” she said.

- With files from The Canadian Press