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Today, the province announced a substantial increase to the hourly minimum wage and other increases scheduled for 2023 and 2024. See the full release here.
Typically, the formula used to determine Saskatchewan’s minimum wage gives equal weight to changes to the Consumer Price Index and Average Hourly Wage for Saskatchewan. Today’s increase is being introduced as a necessary “market adjustment” that reflects the extraordinary costs minimum wage earners are now facing on the heels of the pandemic.
While it’s hoped that this adjustment will make life more affordable for minimum wage earners, it’s a different story for many business owners grappling with increasing costs to operate across the board. Energy costs, inputs, insurance, payroll taxes and debt servicing costs are already stalling recovery in many sectors, particularly for the hardest-hit business in small retail and hospitality. For them, margins are already slim and eroding faster than they can fully recover.
In response, anticipate that this increase will be passed along by businesses to consumers. Many salary-based businesses will feel the change as well, adjusting their pay scales to reflect the change.
The Chamber believes that changes to the minimum wage should be indexed, planned and tied to an updated formula that reduces the need for unexpected market adjustments. Substantial changes to the minimum wage outside the legislated formula contribute to uncertainty and create challenges for SME owners/operators to plan accordingly.
The Chamber remains confident in Saskatchewan’s economic prospects, noting that the province is likely to recover and grow faster than many of its counterparts across Canada. This rising economic tide has the potential to lift all boats, making Saskatchewan more affordable for both businesses and consumers.
Typically, the formula used to determine Saskatchewan’s minimum wage gives equal weight to changes to the Consumer Price Index and Average Hourly Wage for Saskatchewan. Today’s increase is being introduced as a necessary “market adjustment” that reflects the extraordinary costs minimum wage earners are now facing on the heels of the pandemic.
While it’s hoped that this adjustment will make life more affordable for minimum wage earners, it’s a different story for many business owners grappling with increasing costs to operate across the board. Energy costs, inputs, insurance, payroll taxes and debt servicing costs are already stalling recovery in many sectors, particularly for the hardest-hit business in small retail and hospitality. For them, margins are already slim and eroding faster than they can fully recover.
In response, anticipate that this increase will be passed along by businesses to consumers. Many salary-based businesses will feel the change as well, adjusting their pay scales to reflect the change.
The Chamber believes that changes to the minimum wage should be indexed, planned and tied to an updated formula that reduces the need for unexpected market adjustments. Substantial changes to the minimum wage outside the legislated formula contribute to uncertainty and create challenges for SME owners/operators to plan accordingly.
The Chamber remains confident in Saskatchewan’s economic prospects, noting that the province is likely to recover and grow faster than many of its counterparts across Canada. This rising economic tide has the potential to lift all boats, making Saskatchewan more affordable for both businesses and consumers.