As of May 1, 2012, the minimum wage in British Columbia is increasing to $10.25 per hour. The exception will be to “employees serving liquor directly to customers or guests in licensed premises” who will max out at $9 an hour. Minimum wage had remained at $8 per hour for the past ten years and was the lowest in Canada until Premier Christy Clark announced the incremental increases back in March of 2011.
With this increase, BC will also be eliminating the “training wage” which allowed employers to pay first-time workers only $6 an hour for their first 500 hours of employment.
As noted by Christy, “raising the minimum wage and eliminating the training wage is a fair and reasonable step forward in putting families first and building our economy.” BC will now have one of the highest minimum wage rates in Canada.
As a business owner, this may initially impact your earnings and cash flow however with providing employees a more reasonable wage, will not only give you happier employees who aren’t as stressed about money, but there will likely be an increase in consumer spending throughout the Province which will come back to the business owners. In my opinion, this is just part of the business cycle – from business owner to employee back to business owner and employees again.
What are your thoughts on the minimum wage increase? Have you noticed any significant profits or losses since the last increase?