Living Wages: The Evolution of Minimum Wage in Prince Edward Island

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On September 28, 2023, the Lieutenant Governor in Council approved an amendment to the Minimum Wage Order under the Employment Standards Act of Prince Edward Island (R.S.P.E.I. 1988, Cap. E-6.2). This amendment introduces new minimum wage rates to be implemented in 2024, following a review by the Employment Standards Board.

The concept of minimum wage in Canada began to gain traction in the early 20th century, with PEI establishing its first minimum wage legislation in 1965. Initially, the minimum wage was set at a modest rate, aimed primarily at protecting low-income workers, particularly women and young people in the workforce.

Throughout the 1970s and 1980s, minimum wage rates in PEI were periodically reviewed and adjusted, often influenced by inflation and the rising cost of living. The Employment Standards Board was created to oversee these changes and ensure that wage rates remained fair and equitable.

In the 1990s and early 2000s, discussions around minimum wage intensified, with advocacy groups pushing for higher rates to address economic disparities. Adjustments became more frequent, reflecting the changing economic landscape and the need to support workers in an evolving job market.

By the late 2010s, PEI’s minimum wage began to see more substantial increases, driven by public demand for better living standards. The government committed to regular reviews and adjustments to ensure the minimum wage kept pace with inflation and the cost of living.

Effective April 1, 2024, the minimum wage for employees covered under the Act will increase to $15.40 per hour. Subsequently, on October 1, 2024, the minimum wage will further rise to $16.00 per hour.
Implementation Dates: The Order outlines that the changes will take effect on the specified dates in 2024. The first adjustment comes into force on April 1, and the second adjustment is set for October 1.

These amendments serve to ensure that the minimum wage reflects ongoing evaluations by the Employment Standards Board, which is mandated to conduct regular reviews as per subsection 5(2) of the Employment Standards Act. These adjustments are aimed at improving the financial well-being of employees in the region, aligning wage rates with living costs and economic conditions.

The EC2023-840 amendment marks the ongoing effort to enhance minimum wage standards in Prince Edward Island, establishing clear wage increases for the upcoming year based on comprehensive evaluations of the labor market and economic conditions.

Prince Edward Island (EC2023-840) October 7, 2023