Sets new maximum deduction for meals, board and lodging
Prince Edward Island is increasing the province's minimum wage from $12.25 to $12.85 per hour starting July 2020, continuing the yearly trend that started in 2000.
The new $0.60 per hour rate increase came a year after P.E.I. marked a $.70-per-hour rate increase in 2019, which saw a $12.25-per-hour minimum rate compared to $11.55 in 2018.
Increasing the minimum wage can have a significant impact on the business community, especially on small business, and the government is “asking the board to consider a multi-year approach to trending minimum wage increases, including any legislative changes that may be required in order to do so,” says Matthew MacKay, minister for economic growth, tourism and culture.
“By providing the business community with a sense of where minimum wage may be going down the road, it will help businesses be more proactive in planning for the future as they strive for long-term growth and success," says MacKay.
The government is also setting new maximum amounts employers can deduct from the salary of employees who receive meals, board and lodging as of July 2020 — an update on the policy that took effect in 2009.
Employers can deduct up to $61.60 per week (from $56.00 per week in 2009) on employees who receive board and lodging and $49.50 per week (from $45.00 per week in 2009) on employees who receive board only. They can also deduct a maximum of $27.50 per week (from $25 per week in 2009) from employees who receive lodging only and $4.13 per meal (from $3.75 per meal in 2009) from employees who receive meals.