On May 1, 2025, Quebec's minimum wage saw a modest increase from $15.75 to $16.10 per hour, marking a 2.2% rise. This adjustment, while welcomed by some, has sparked significant debate among various stakeholders regarding its adequacy in the face of rising living costs.
The Canadian Federation of Independent Business (CFIB) expressed its concerns about the increase, highlighting that it will add an estimated $838 per year in costs for businesses for each employee earning minimum wage, which includes $110 in payroll taxes. François Vincent, the CFIB's vice-president for Quebec, noted that this additional expense compounds the pressures businesses face due to ongoing trade tensions with the United States.
Despite the CFIB's relief that the government dismissed a proposal to raise the minimum wage to $20 per hour—an increase that could have cost Quebec an estimated $10 billion—many advocates argue that the current rise is insufficient. The Collectif pour un Québec sans pauvreté criticized the increase as "derisory," pointing out that the $0.35 hike falls short of the 2024 inflation rate of 2.4% and represents the lowest minimum wage increase in a decade.
Serge Petitclerc, a spokesperson for the Collectif, lamented, "This decision condemns workers to live in poverty despite full-time employment." According to the Institut de recherche et d’informations socioéconomiques (IRIS), a living wage in Montreal is pegged at $28 per hour, highlighting a significant gap between the minimum wage and what is needed to live with dignity.
In 2022, between 12% and 15% of Quebec households were living below the viable income threshold, a situation exacerbated by the sharp increases in food prices (16%) and housing costs (20%) over the past three years. The disparity between the minimum wage and a viable income continues to widen, with food banks in Quebec responding to around 2.9 million requests for assistance each month in 2024—an increase of one million requests compared to three years prior. Alarmingly, nearly 20% of those seeking food assistance have employment as their primary source of income, a figure that has doubled since 2010.
The increase in minimum wage will benefit approximately 217,400 employees, including 118,400 women, who can expect an increase in their disposable income of up to $484 annually. However, many feel this amount does not adequately address the rising cost of living. The IRIS has indicated that a single individual working full-time at the minimum wage would earn an annual disposable income of $26,906, while the measure of the basic consumption basket (MPC) stands at $26,155 per year.
While the government has made strides in raising the minimum wage from $12 to $16.10 over the past six years—a total increase of 34.2%, which surpasses the inflation rate of 25% during the same period—critics argue that the current wage still fails to provide a sustainable livelihood. The new minimum wage rate also places Quebec third among Canadian provinces for the highest minimum wage, trailing behind British Columbia ($17.85), Ontario ($17.60), and Nova Scotia ($16.50).
In a broader context, the minimum wage increase aligns with the expected inflation rate for the year, which the Quebec government projected at 2.1% in its March 2025 budget. Over the years, the growth of the minimum wage has generally outpaced the cost of living, with a 28.8% increase in the minimum wage since 2019 compared to a 21.9% rise in the consumer price index (CPI).
Approximately 4.6% of Quebec's workforce, or about 185,700 individuals, earned the minimum wage in 2024. Notably, 61% of these workers are aged 15 to 24, with 69% working part-time and 90% having no dependent children. This demographic trend suggests that many minimum wage earners are likely students or young workers entering the job market.
Despite the apparent challenges posed by raising the minimum wage, some experts argue that substantial increases would have a limited negative impact on businesses. The IRIS suggests that even significant wage hikes would lead to only modest price increases, as labor costs comprise a small fraction of overall production expenses. Moreover, raising the minimum wage could stimulate local consumption, as low-income households tend to spend most of their income on essential goods.
As discussions surrounding the minimum wage continue, the government faces scrutiny over its approach to balancing the needs of workers with the economic realities faced by businesses. Jean Boulet, the Minister of Labor, stated that the increase was designed to respect the financial capacity of businesses while allowing workers to increase their income and maintain their purchasing power. However, critics question whether this balance adequately addresses the financial struggles faced by many low-income workers.
In conclusion, while the increase in Quebec's minimum wage is a step forward, it raises critical questions about the adequacy of wages in light of rising living costs and the ongoing economic pressures faced by many residents. As various stakeholders weigh in on the implications of this change, the conversation about what constitutes a fair and livable wage in Quebec is likely to continue.
