2.6% wage increase keeping up with inflation, says government
British Columbia’s lowest-paid workers will see a 2.6-per-cent wage increase on June 1, 2025, keeping pace with inflation, according to the provincial government.
The general minimum wage will increase from $17.40 to $17.85 per hour.
“Minimum wage earners are vulnerable to jumps in the price of groceries, rent and gas,” says Jennifer Whiteside, minister of labour. “That’s why we took action last year to ensure the minimum wage keeps up with the cost of living so workers don’t fall further behind.”
In 2024, B.C.’s minimum wage rose from $16.75 to $17.40 per hour, representing a 3.9 per cent increase, which was consistent with the province’s average rate of inflation in 2023, according to the provincial government.
Minimum wage rates for residential caretakers, live-in home-support workers, camp leaders and app-based ride-hailing and delivery services workers will receive the same 2.6 per cent increase on June 1 this year.
On Dec. 31, 2025, the minimum pay rates for 15 hand-harvested crops will also increase by the same percentage.
Notes:
- British Columbia: The minimum wage is set to rise to $17.85 per hour on June 1, 2025.
- Nova Scotia: An increase to $15.70 per hour is planned for April 1, 2025, followed by another rise to $16.50 per hour on October 1, 2025.
- Yukon: Will increase its minimum wage to $17.94 on April 1, 2025.
- Quebec: Minimum wage is set to increase from $15.75 to $16.10 per hour on May 1, 2025.
- Newfoundland and Labrador: As of April 1, 2025, the minimum wage will increase to $16.00 per hour,
In spring 2024, the B.C. government made changes to the Employment Standards Act, which mandated annual wage increases.
Impact of minimum wage on employers
Employers are welcoming the increase in pay for workers in BC, according to the provincial government.
“Supporting workers is crucial for the success of my business,” says Philip Aguirre, owner of Old Surrey Restaurant, and executive director of the Newton Business Improvement Association. “When my employees are paid a fair minimum wage, they feel appreciated and that translates into a more positive work environment. It also leads to higher efficiency and lower turnover, two things every business owner strives for.”
Fred Soofi, former employer, Pasta Polo, Coquitlam agrees:
“I firmly believe it benefits businesses by increasing the productivity and morale of employees. I appreciate our government in B.C. implementing annual minimum wage increases, which are going to help workers and families with the high cost of living we are facing at the present time.”
However, one in three (32 per cent) of Canadian companies say mandatory minimum wage hikes result in increased salaries/wages across the entire company – not just for minimum wage workers, found a 2024 survey.
Nearly one in five businesses say that upcoming minimum wage hikes will result in them:
- using more automation/AI (19 per cent)
- decreasing the number of hours that employees work (17 per cent)
- reducing their workforce (14 per cent)
- outsourcing more work (14 per cent)
