Saskatchewan's 2024 minimum wage increase

The minimum wage in Saskatchewan will increase to $15 per hour on October 1st, 2024.

This increase represents a $1.00 increase from the current minimum wage of $14.00 per hour that took effect on October 1st, 2023. The change was part of a series of planned increases announced by the Saskatchewan government to gradually raise the minimum wage to reflect a market adjustment. Minimum wage was increased from $11.81 to $13.00 in 2022, then to $14.00 in 2023. This year’s marks the final $1 increase. After this year’s adjustment, Saskatchewan plans to return to calculating minimum wage changes using the traditional indexation formula, by annually reviewing and adjusting the minimum wage based on the province’s consumer price index.

The incremental increases were taken as a step towards aligning worker wages with changing market conditions. According to the Province’s News Release on July 2, 2024, the 2024 provincial budget contains no tax increases nor new taxes, and that many low-income Saskatchewan residents are no longer paying provincial income tax.

Workplace Safety Minister Don McMorris pointed out that Saskatchewan “continues to have among the lowest personal taxes in Canada”. While the increase is rather substantial, especially when compared to recent years, many critics state that it is insufficient to meet the basic needs of workers in Saskatchewan. The Province deems it as supporting workers and maintaining affordability while still balancing business interests. In theory, higher wages could boost local economies, with workers having more disposable income to spend within their communities. But the inflationary pressures, combined with the living wage gap, means that many workers will continue to struggle to meet their basic needs.

Changing the minimum wage in increments, rather than one large increase, was the Province’s attempt at reducing the pressure of increased wage costs on businesses. But as wages increase, so do the prices of goods and services as businesses attempt to recoup the cost.

In 2023, the estimated living wage was calculated at $17.90 per hour for Regina and $18.95 for Saskatoon, so for many workers this minimum wage increase falls very short. Even at $15.00, Saskatchewan will still be tied with Alberta for being the lowest among Canadian provinces. As a comparison, the Federal minimum wage is currently sitting at $17.30.

While the Province provided time for businesses to adapt, prepare and adjust their operations, business may still encounter difficulty. Many employers already struggle to find workers at current wage levels, and the increase could further complicate future hiring efforts. To manage the increased labour costs, businesses may need to look at reviewing and optimizing their business hours to reduce labour during slow times, cross training employees to improve efficiency and flexibility in staffing, as well as implementing clear overtime policies to keep excess labour costs in check. 

For more information on the increase, visit this link.