The Lieutenant Governor in Council of Prince Edward Island approved the Employment Standards Act Minimum Wage Order EC2025-326. This order establishes new minimum wage rates for all employees covered by the applicable section of the Act. The order mandates that, effective October 1, 2025, the minimum hourly wage will be set at $16.50. This rate will remain in effect until March 31, 2026. Following this period, a further increase will be implemented, raising the minimum wage to $17.00 per hour starting April 1, 2026.

In addition to wage increases, the order also outlines regulations governing deductions from employee wages in cases where employers provide board and lodging. These deductions represent the maximum amounts an employer is permitted to withhold from an employee’s wages in exchange for furnished accommodations or meals. Specifically, if an employer provides both board and lodging, they may deduct up to $61.60 per week. If only board is provided, the maximum allowable deduction is $49.50 per week, while lodging alone permits a deduction of up to $27.50 per week. For individual meals provided, employers may deduct $4.25 per meal. However, the order explicitly states that employers are prohibited from deducting any amount for a meal that the employee did not receive. This provision ensures that deductions are fair and based on actual benefits received by the employee, preventing any potential misuse of wage deductions under the guise of meal provision.

The order officially revokes the previous Employment Standards Act Minimum Wage Order, EC139/96, thus replacing it with this updated directive. This revocation signifies a formal transition to the new standards and removes the legal standing of the prior order, ensuring clarity and consistency in enforcement. By setting out these changes and specifying clear terms around wage levels and permissible deductions for board and lodging, the order aims to improve protections for employees and provide employers with up-to-date guidelines for compliance with the Employment Standards Act. The phased increase in the minimum wage also reflects a structured approach to economic adjustment, offering both workers and employers time to prepare for and adapt to the new wage environment.

The history of minimum wage legislation in Prince Edward Island (PEI) has been a gradual evolution toward greater wage parity and labor protections. In 1959 the province passed the Women’s Minimum Wage Act, followed by the Minimum Wage Act for Men in 1960, each initially applying to select occupations and regions with low base wages. Over the 1960s and 1970s, a series of Orders incrementally raised minimum wage rates and began narrowing gender-based discrepancies. By 1974, a unified minimum wage rate for all adults was established, marking a significant move toward wage equality. Throughout the 1980s and 1990s, further increases were implemented, accompanied by detailed exemptions for certain industries such as farming, trucking, and fish processing, recognizing their unique labor demands. By 1993, a single minimum wage rate applied to all employees, streamlining wage policy.

Prince Edward Island (2025-326) April 16, 2025
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