British Columbia indexes the minimum wage to CPI

Written by on March 23, 2015 in Employment Law Blog
British Columbia

In the interest of providing reasonable and predictable yearly minimum wage increases, the British Columbia (B.C.) provincial government will tie increases to its Consumer Price Index (CPI). Moving forward, the minimum wage will be calculated by using a formula based upon the percentage of the B.C. CPI increase from the previous calendar year. If the previous year had a negative CPI change, then the minimum wage would stay the same.

This indexing calculation will be applied effective September 15, 2015. The general minimum wage rate will increase from $10.25 per hour to $10.45 per hour. The liquor server minimum wage rate will increase from $9.00 per hour to $9.20 per hour.

Rates for live-in home support workers, live-in camp leaders, resident caretakers and the farm worker piece rates will increase proportionately to the 20-cent increase of the general hourly minimum wage. All of the new rates will be effective on September 15, 2015.

In order to give businesses and organizations the necessary lead time to implement the new minimum wage without any undue hardship, the B.C. government will announce the yearly minimum wage increases in the month of March to take effect September 15 of each year.

For more information, visit British Columbia’s Ministry of Jobs, Tourism and Skills Training.

Sign up for our e-Newsletter for the latest updates and case studies in employment law.

Comments are closed.