PEI approves two more minimum wage increases

As Prince Edward Island adjusts to its new reality of economic, population, and inflationary growth, the provincial government has approved the recent recommendation from the PEI Employment Standards Board for two increases to the minimum wage in 2024. On April 1, 2024, the minimum wage rate will move from $15.00 to $15.40 per hour while on October 1, 2024, the base wage rate will increase to $16.00.

RCC participated in the PEI Employment Standards Board’s minimum wage consultation during the summer of 2023 and continued its call for predictability and transparency in the setting of the province’s minimum wage. Although RCC continues to express its opposition to the implementation of multiple minimum wage increases per annum, it should be noted that in recent years, the government has followed RCC’s long-standing advocacy position that minimum wage increases should follow the change in the Consumer Price Index for the previous year.

For instance, PEI’s minimum wage increased by almost 9.5% in 2023 which is generally in line with the change in the Consumer Price Index from 2022. The 2024 adjustments will increase the province’s base wage by 6.6%. Such an increase is much higher than the province’s current CPI rate of 3.5% for 2023 but the government is also trying to respond to the continued call from social groups to help low-income Islanders deal with the ever-increasing costs of living.