As the cost of living continues to climb across the country, five Canadian provinces have raised their minimum wage rates as of Wednesday, aiming to provide some relief to workers struggling to make ends meet. From Saskatchewan to Prince Edward Island, the new legal minimums are now in effect, with small business owners already calculating the impact.
At the heart of Charlottetown, P.E.I., Charlottetown Bakery and Cafe co-owners Amardeep Singh and Harpreet Kaur say the wage increase means adjusting their approach to staffing and costs.
“Instead of hiring more people, we will give more wages and more hours to our permanent employees,” said Singh, who runs the front office and marketing while Kaur oversees the recipes and ingredients.
With major holidays like Thanksgiving, Diwali, Halloween, and Christmas on the horizon, it’s the busiest time of year for the bakery. Singh says two of their employees currently earn minimum wage, but all staff will see increases. He estimates the new rates will cost their business around $2,500 more annually.
“Not now, but during Christmas time, we will pass a little bit on our product because we need to make money,” he said, hinting at modest price increases.
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Minimum Wage Changes by Province
Prince Edward Island
New rate: $16.50/hour (up from $16.00)
Nova Scotia
New rate: $16.50/hour (up from $15.70)
Note: This is the second increase in 2025. The rate was previously raised from $15.20 in April.
Ontario
New rate: $17.60/hour (up from $17.20)
Saskatchewan
New rate: $15.35/hour (up from $15.00)
Manitoba
New rate: $16.00/hour (up from $15.80)
Provinces Holding Steady or Already Increased Wages
Not every region saw changes this week.
British Columbia, Quebec, New Brunswick, and Newfoundland and Labrador had already raised their minimum wages earlier this year. Alberta, however, has not made any adjustments and now has the lowest minimum wage in Canada at $15/hour.
Experts Say Increases Help, But Don’t Go Far Enough
While the hikes are welcomed by many, they still fall short of what’s required to meet basic living standards, says Christine Saulnier of the Canadian Centre for Policy Alternatives.
“We have so many workers who are struggling,” she said.
According to the centre’s September living wage report, the actual income needed to cover essentials in P.E.I. is $22.77/hour, making the new minimum wage over $6 less than what’s considered sufficient. In Nova Scotia, the gap is even wider — more than $11.
“These are conservative estimates,” Saulnier added. “And we know that minimum wage workers spend every dollar they earn right in their communities — including at the small businesses that employ them.”
Small Business Owners Sound the Alarm on Rising Costs
Not everyone sees wage increases as the best tool to tackle poverty.
Frederic Gionet, Atlantic director at the Canadian Federation of Independent Business, says raising minimum wage may not have its intended effect — and could even hurt small businesses and fuel inflation.
“Increasing minimum wage is usually a blunt weapon,” Gionet said. “It’s very popular and looks good on the surface, but often it doesn’t really reduce poverty.”
He pointed out that 60% of CFIB members say that a higher minimum wage means raising wages across the board, which increases overall operating costs and often leads to price hikes.
“It’s inflationary… it’s a perpetual race for the top that’s not grounded in economic reality,” he added.
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The Bigger Picture: More Than Just Wages
While wage increases help, experts agree they are only part of the solution. Broader policies — like tax breaks, affordable childcare, and public transit investments — are also necessary to support working Canadians.
Saulnier applauds P.E.I.’s approach, noting the province has taken steps in the right direction with accessible childcare and public transportation improvements.
And the changes aren’t done yet — a government spokesperson confirmed P.E.I.’s minimum wage will rise again in April 2026, reaching $17/hour.
What It Means for Workers on the Ground
Back at Charlottetown Bakery and Cafe, employee Manpreet Kaur says the wage increase will ease some pressure.
“At the grocery store, it’s very expensive — milk, bread, vegetables, chicken,” she said. “I’m glad I can get more money.”
While the debate continues among policymakers, business groups, and economists, for many workers like Kaur, the extra dollars make a real difference — even if they’re still not enough to cover all the bills.
Final Thoughts: A Balancing Act Between Business and Basic Needs
The minimum wage hike reflects a growing national conversation: how to ensure fair pay for workers while keeping small businesses afloat. As inflation persists and economic uncertainty looms, provinces will likely continue to adjust minimum wages — but whether those increases can keep pace with real-life costs remains to be seen.