VICTORIA – The British Columbia government will be increasing the minimum wage in two stages to 40 cents to better reflect the province’s overall economic growth and ensure all workers benefit from B.C.’s success but it will only be going up 10 cents this September and 30 cents in September 2017.
Last year, government announced a policy to index the minimum wage to British Columbia’s Consumer Price Index (CPI). Based on British Columbia’s 2015 CPI, the minimum wage this year would increase by 10 cents per hour. With British Columbia expected to lead the country in economic growth this year and next, the government has decided there is room for an adjustment to the minimum wage rate beyond B.C.’s CPI.
The first increase will be 40 cents and bring the minimum wage rate to $10.85 per hour, effective Sept. 15, 2016. This new rate includes the 10 cents scheduled for the 2015 CPI, plus an additional 30 cents.
A second increase of 30 cents plus an amount based on the 2016 CPI (estimated to be 10 cents) will bring the minimum wage rate to $11.25, effective Sept. 15, 2017. The 2016 CPI will be available from Statistics Canada by March 2017.
The B.C. government also is reaffirming its commitment to reducing the small business tax rate by 40% by 2017-18. This would mean a small business that is incorporated with $100,000 in active business income would have its taxes go from $2,500 to $1,500, savings of $1,000 annually.
In addition, the Province is investing $2.88 million in new training programs to help with labour shortages in the province. The programs will be help young people, small businesses and employers in the retail, hospitality, agriculture and aquaculture sectors.
The first program is a $2.38-million investment through the Canada-BC Job Grant. This new Job Grant stream will help businesses invest in training by covering the cost of training a newly hired employee who was unemployed prior to training.
