As of May 1, 2025, the minimum wage in Quebec has been raised to $16.10 per hour, marking a $0.35 increase from the previous rate. While this adjustment may seem beneficial, a closer look reveals that for many workers, particularly those with families, this wage is still insufficient to cover basic living expenses.
According to a report from l’Institut de recherche et d’informations socioéconomiques (IRIS), a single person in Montreal needs to earn at least $40,084 to maintain a decent standard of living. For an adult with one child, the necessary income jumps to $52,285, and for a household with two adults and two children, it rises to a staggering $85,200. These figures underscore a troubling reality: the minimum wage increase does not adequately match the rising cost of living.
The IRIS report, released on April 30, 2025, highlights that more than 15% of Quebec households are currently living below the "viable income" threshold, which is defined as the amount necessary to avoid poverty. The report indicates that this threshold is not merely about meeting basic needs but achieving a modest yet decent quality of life.
In addition to the alarming statistics, the report reveals that the minimum wage increase of 2.2% falls short of the inflation rate of 2.3% recorded in 2024. This discrepancy suggests that workers earning minimum wage are effectively experiencing a decline in their purchasing power. Guillaume Tremblay-Boily, a researcher at IRIS, stated, "This increase is largely insufficient, and it corresponds to a real impoverishment for minimum wage workers." He emphasizes that the gap between the minimum wage and the viable income continues to widen.
Looking beyond Montreal, the viable income requirements vary across other cities in Quebec. For instance, in Gatineau, a single person needs $41,110, while a single parent with one child requires $53,309. In Sherbrooke, these figures are $33,595 for a single person and $46,624 for a single parent. The differences in viable income highlight the regional disparities in living costs and economic conditions.
Interestingly, Quebec boasts the lowest proportion of minimum wage workers in Canada, standing at just 4.6%. This is significantly lower than Ontario, where 7.7% of workers earn minimum wage. Luc Godbout, the holder of the CFFP, attributes this phenomenon to Quebec's dynamic labor market and lower unemployment rates compared to other provinces. He notes that businesses, including fast-food chains like McDonald's and Tim Hortons, have had to increase wages to attract employees, reflecting the competitive job market.
Despite the relatively low percentage of minimum wage earners, the reality for those who do earn this wage can be quite stark. For instance, a full-time worker earning the minimum wage of $29,094 annually (for 35 hours a week) can find themselves with a disposable income of $40,853 when factoring in government credits and family allowances. In cases where a worker has two children and a non-working spouse, the total disposable income can reach as high as $55,351. This situation, while beneficial for some, highlights the complexities of income distribution and the significant role of government support in lifting families above the poverty line.
However, the picture becomes less rosy when considering that only 10% of the 185,700 workers affected by the wage increase have children. The majority of minimum wage earners are young, often working part-time jobs while pursuing education, a demographic that has remained relatively unchanged over the years. Furthermore, women are disproportionately represented among these workers, raising concerns about gender equity in the labor market.
In light of these statistics, the question arises: is the minimum wage sufficient to ensure a decent living? The consensus among experts seems to be that while the increase is a step in the right direction, it still falls short of addressing the fundamental economic challenges faced by many Quebec families.
In summary, as Quebec adjusts its minimum wage, the broader context of economic viability and living standards cannot be ignored. The data presented by IRIS paints a clear picture: while the minimum wage increase may provide some relief, it is not enough to bridge the gap to a livable income for many residents. As discussions about economic policy continue, the focus must shift toward creating sustainable solutions that ensure all Quebecers can thrive, not just survive.
