Committee recommends N.S. raise minimum wage to $15 sooner than planned
Global News
The Nova Scotia Minimum Wage Review Committee is recommending the province now implement a $15 minimum wage by October, six months earlier than originally planned.
The Nova Scotia Minimum Wage Review Committee is recommending the province increase its minimum wage to $15 per hour six months earlier than originally planned due to the impacts of inflation.
In its December 2022 report, the committee recommended the province increase the minimum wage to $14.50 on April 1, 2023, and then to $15 per hour on Oct. 1.
Its previous recommendation made in December 2021 — which the province accepted — was to increase the wage to $15 by April 1, 2024. The current minimum wage is $13.60 per hour.
Due to the “unforeseen increases in inflation,” the December 2022 report said, the move to a $15 minimum wage should be accelerated.
“The Committee’s December 2021 recommendation to reach a $15.00 minimum wage by April 2024 was made with concerns about minimum wage earners living below the poverty line and struggling to make ends meet in mind,” the 2022 report said.
“At that time, inflation (i.e. the percentage change in CPI) for the 2022 and 2023 calendar years was projected to be 3% and 2%, respectively. Inflation for the 2022 calendar year is now estimated to be 7% and inflation for the 2023 calendar year is currently forecasted to be 4%.
“Any increase in the minimum wage that is matched by an increase in inflation results in no increase in purchasing power for the minimum wage earner.”
The committee also recommended a new formula for calculating minimum wage increases. It said starting in April 2024, the minimum wage should be adjusted each year by the percentage change in the projected annual CPI for the calendar year immediately preceding the year the adjustment is made, plus an additional one per cent.