Alberta Minimum Wage Increases by $1 on October 1, 2016 — The Good & The Bad

The next step in a $15 an hour minimum wage by 2018 occurs on October 1st.

For the NDP government to be able to stick to their word about giving Albertans a $15/hr minimum wage by 2018, the wage bumps need to either occur frequently, or in large enough sums.

It looks like the government has decided to go with the latter as they raise the minimum wage by $1/hr on October 1, 2016, again in October of 2017 by an additional $1.40/hr, and one final time in October of 2018 by another $1.40/hr.

Alberta’s minimum wage as of this writing is $11.20/hr.

REMOVING THE LOWER SERVER RATE — Aside from the minimum wage raise, the NDP government will also be getting rid of  the lower pay rate in which liquor servers receive. They hope to accomplish this by this fall. Liquor servers are currently being paid $0.50/hr less than minimum wage workers.

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GOOD FOR SOME, BUT NOT FOR ALL — Although this is great for the 38,600 Albertans that receive minimum wage [only 2% of all Alberta employees], this will be an incredibly tough situation for those running ‘mom-and-pop’ shops across the province.

FROM 2% TO 10% — When the hourly rate reaches $15/hr in late 2018, the number of Albertans getting paid minimum wage [will increase by roughly 300,000 people], or in other words, almost 10x that of which is paid minimum wage today.

MORE PAY, LESS JOBS — Unfortunately however, this minimum wage increase will more than likely cost some younger Edmontonians their jobs as companies struggle to do whatever they can to stay in business without running out of funds.

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Jody Mitoma

Founder of Edmonton Talks News.

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