Nova Scotia’s second minimum wage this year raised concerns from small business advocates.
Effective Oct. 1, the minimum wage will be $16.50 an hour. It follows an increase to $15.70 on April 1.
The Canadian Federation of Independent Business expressed concerns about the effect the increase could have on small businesses across the province.
“The business environment over the past year has been turbulent and unpredictable,” CFIB director of legislative affairs for Nova Scotia Duncan Robertson said in a statement. “From tariffs, supply chain disruptions and a tourism season impacted by wildfires and construction, this new cost increase is coming at a very difficult time for small and medium enterprises in our province.”
According to CFIB, more than one in three small businesses in Nova Scotia have making minimum wage on their payroll. However, close to six in 10 said increases to the minimum wage result in increased wages across all wage levels.
CFIB also stated 52 per cent of small businesses in the province can’t absorb what it described as a “significant increase” without raising prices to keep up.
CFIB said the latest increase was disconnected from the formula currently set out in regulations, which is consumer price index plus one per cent per year.
The organization called on the provincial government to make the minimum wage policy more transparent and consider economic realities facing small businesses.
Nova Scotia was one of five provinces to increase minimum wage Wednesday, joining P.E.I., Ontario, Manitoba and Saskatchewan. With the increases, Alberta now has the lowest minimum wage in Canada at $15 per hour.
