On May 1, 2025, Quebec's minimum wage saw a modest increase from $15.75 to $16.10 per hour, marking a $0.35 rise that translates to a 2.22% increase. This adjustment, announced earlier in January by the Ministry of Labour, is expected to benefit approximately 217,400 workers across the province, including a significant number of student employees and those working in retail and hospitality.
Jean Boulet, the Minister of Labour, expressed optimism about the wage hike, noting that it could add up to $484 more annually for workers earning minimum wage. This increase is also applicable to workers who rely on tips, with their minimum wage rising from $12.60 to $12.90 per hour, a 2.38% increase. Boulet emphasized that the adjustments are designed to balance the needs of workers with the financial realities faced by businesses, stating, "This increase evolves the minimum wage in a balanced way, respecting the capacity of companies to pay, while allowing workers to increase their income and preserve their purchasing power."
However, reactions to the increase have been mixed. The Canadian Federation of Independent Business (CFIB) acknowledged the hike but highlighted that it would impose an additional cost of $838 annually per employee on businesses, which includes $110 in payroll taxes. The CFIB was relieved that a more drastic proposal to raise the minimum wage to $20 per hour was rejected, a move that a recent study indicated could have cost Quebec $10 billion and jeopardized many businesses.
On the other hand, the Collectif pour un Québec sans pauvreté criticized the increase as "derisory," arguing that it falls short of keeping pace with inflation, which is projected to be 2.4% for 2024. Serge Petitclerc, a spokesperson for the Collectif, lamented that this decision would force many workers to live in poverty despite holding full-time jobs. According to the Institut de recherche et d’informations socioéconomiques, a living wage in Montreal is estimated to be around $28 per hour, significantly higher than the current minimum.
In 2024, approximately 185,000 workers in Quebec were earning the minimum wage, which is a slight increase from the previous year but still significantly lower than pre-pandemic levels. Notably, nearly 5% of the province’s workforce is currently earning minimum wage, with young people aged 15 to 24 making up a significant portion of this demographic. The recent study from the Chaire de recherche en fiscalité et en finances publiques at the Université de Sherbrooke revealed that about 16% of employees earn up to 1.25 times the minimum wage, highlighting a broader economic challenge.
Furthermore, the situation surrounding food insecurity in Quebec paints a troubling picture. Food banks reported responding to approximately 2.9 million requests for assistance monthly in 2024, which is a million more than three years prior. Alarmingly, nearly 20% of those seeking food aid have jobs, a figure that has doubled since 2010. This trend underscores the increasing disconnect between employment and the ability to earn a viable income.
Despite these challenges, Minister Boulet defended the wage increase as a reasonable decision, stating, "We must maintain the purchasing power of minimum wage earners, and this increase of 2.2% aligns closely with the anticipated inflation rate of 2.1% for the same period." He also pointed out that Quebec has the lowest proportion of minimum wage earners in Canada, at just 4.6%. Boulet emphasized the importance of social safety nets, including family allowances and tax credits, in helping those on minimum wage.
As the province adjusts its minimum wage, the broader economic landscape remains a concern. The rising costs of living, particularly in urban centers, continue to outpace wage increases, leading to a growing disparity between minimum wage and the income required to live decently. A recent study indicated that a single person in Quebec needs between $32,000 and $43,000 annually to maintain a reasonable standard of living in major urban areas.
Since 2019, Quebec's minimum wage has increased by an impressive 34.2%, reflecting ongoing efforts to address the needs of low-income workers. However, as inflation continues to rise and living costs increase, questions remain about the adequacy of these wage adjustments in truly alleviating poverty and ensuring that all workers can thrive.
In conclusion, while the increase in Quebec's minimum wage is a step forward for many, it also highlights the ongoing struggles faced by low-income workers in the province. The mixed reactions from various stakeholders underscore the complexities of wage policy and the need for a comprehensive approach to address the economic challenges that many Quebecers continue to face.
