What is the minimum wage in British Columbia?
As of June 1, 2021, British Columbia’s current minimum wage is $15.20 per hour. Any job that pays employees hourly, salary, or on commission must reflect this minimum wage, with very few exceptions. For example, if an employee works 40 hours a week, the employer must pay them at least $584. If the minimum wage rises, the employer is legally required to increase the pay.
Who earns minimum wage in British Columbia?
There are many professionals in British Columbia who earn minimum wage and benefit from it increasing. Some jobs that typically earn minimum wage are fast-food workers, retail clerks, farmhands, resident caretakers, in-home support workers, and many more. As so many people rely on minimum wage in British Columbia, increasing it is important to ensure everyone can continue to afford to live in the province.
Who is not covered by the minimum wage in British Columbia?
While it is the law that employers pay their staff the minimum wage, this does apply to every position and person. For example, apprentices who are training for a job do not have to earn minimum wage. Similarly, those who receive room and board may not earn minimum wage. This includes live-in caretakers and live-in camp leaders. In these roles, employees can earn less than minimum wage if the employer pays for the room and board. However, the employee’s wage can only reduce by a maximum of $.50 per meal and $.60 per day for lodging.
In British Columbia, the minimum wage applies to most students under 18 years old, with a few exceptions. Minimum wage laws do not cover students working at the school they’re enrolled in or students completing work-study programs.
Previously, British Columbia, Quebec, and Ontario were the only three provinces in Canada that pay liquor servers and other employees that receive tips less than minimum wage. This is because tipped employees typically increase their wages well beyond the minimum wage from the tips they receive. British Columbia recently changes this law, though, and liquor servers now must earn the same minimum wage as of June 2021.
How has the minimum wage in British Columbia fluctuated over the years?
As the minimum wage reflects the cost of living in the province or territory, it tends to increase at a similar rate. In 2017, the minimum wage was $11.35 an hour, and the next year it increased to $12.65. In 2019, the minimum wage was $13.85 before it increased to $14.60 and then $15.20. British Columbia typically reviews and increases the minimum wage every year.
Why having a minimum wage is important
It is important to have a minimum wage in place to ensure every working citizen can earn enough money to live on. The minimum wage is designed to keep employees above the poverty line. As the average price of homes, food, and products rises, the minimum wage rises to reflect this change.
What is the minimum wage in other provinces and territories?
You may be wondering how the minimum wage in British Columbia compares to other provinces and territories, so let’s take a look! The current minimum wage rates in February 2021 are as follows:
- Alberta: $15.00
- Manitoba: $11.90
- New Brunswick: $11.70
- Newfoundland and Labrador: $12.15
- Northwest Territories: $13.46
- Nova Scotia: $12.55
- Nunavut: $16.00
- Ontario: $14.25
- Prince Edward Island: $12.85
- Quebec: $13.10
- Saskatchewan: $11.45
- Yukon: $13.71
National average: $13.29
Why does the minimum wage vary so much by region?
After comparing the minimum wage of every province and territory, you can see that it varies a lot. This is because the cost of living in every province and territory is different. British Columbia’s minimum wage is much higher than New Brunswick’s because things like buying a house, paying for groceries, and going out are more expensive in British Columbia. So, in order to be able to pay the cost of living in British Columbia, the minimum wage has to be higher.
What can employers deduct from minimum wages?
As an employer, there are some things you can deduct from an employee’s paycheque while paying minimum wage. There are three types of common deductions, Canada Pension Plan (CPP) contributions, Employment Insurance (EI), and income tax.
Employees over 18 and under 65 that work in pensionable employment will have CPP deductions. Your business can use an approved calculation tool to determine how much to deduct. Typically, an employer also matches the deduction with their own contribution to an employee’s CPP. This money is available to employees when they retire.
Employers must also deduct EI premiums from every paycheque. Again, your company can use a standardized calculation tool to determine how much to deduct.
Finally, employers must deduct income tax. Your business will calculate how much to deduct based on the employee’s total claim amount on Form TD1, personal tax credits return, and government-approved calculation methods. There is no annual limit to how much an employer can deduct but if they’ve miscalculated and deducted too much, the employee will get it back when they file their taxes. Employees making minimum wage qualify for low-income tax credits and usually receive a tax refund.
