Minimum wage jumps to $16.10 an hour in Quebec

As of May 1, Quebec's minimum wage is $16.10 an hour, up from $15.75.

When he announced the new minimum wage in January, Labour Minister Jean Boulet said it would benefit 217,400 employees, including 118,400 women, who could see an increase in their disposable income of up to $484 per year.

At $12.90 an hour, workers earning tips are getting a $0.30 increase in hourly wages for a 2.38 per cent increase.

The 35-cent increase in minimum wage represents a 2.2 per cent increase, the smallest increase since Boulet became labour minister in 2018.

In a interview on Radio-Canada's Tout un matin, Boulet defended his decision, saying  the 2.2 per cent increase is on par with the 2.1 per cent inflation rate anticipated for the 2025-26 financial year.

"It's always a delicate decision," he said in French. "We have to find a balance between maintaining and increasing the purchasing power of people on minimum wage and the ability of small and medium businesses to pay."

He said that consideration is especially important during times of financial insecurity. 

When there are a lot of layoffs, he said, "it's important not to put in peril or at risk the jobs of people who earn minimum wage."

The Canadian Federation of Independent Business (CFIB) isn't overly pleased with the 2.2 per cent increase, but admitted it could have been worse.

In a news release, the CFIB said the increase will cost businesses $838 per year for a minimum wage employee, including $110 in payroll taxes.

This expense, the CFIB says, adds to the cost pressures resulting from the trade war with the United States.

Meanwhile, the Institut de recherche et d'informations socioéconomiques (IRIS) released the 11th edition of its annual report on livable income.

The institute is an independent, non-profit organization that studies Quebec's public policies and economy. 

A viable income is an indicator developed by IRIS, looking at the amount of money needed for a household to pull itself out of poverty and have a modest but decent life. 

The report found a single person living in Montreal would need to work full time and earn $28 an hour to achieve that standard. 

According to IRIS, minimum wage barely allows for households to cover their basic needs, especially in the wake of rising rents. In 2024, the average rent increase was 11 per cent in Quebec, the institute found. 

Even though the minimum wage increase is in line with the rate of inflation, IRIS researcher Eve-Lyne Couturier explained in an interview with Radio-Canada that inflation will hit low-income households harder.

She said people living in poverty have limited choices when it comes to cutting spending while still covering their basic needs, whereas higher-income earners have more flexibility and more areas where they can cut.

Minimum wage varies across the country with our neighbours in Ontario currently earning $17.20 an hour until October, when it is set to rise to $17.60. The highest minimum wage in Canada is $19 in Nunavut and the lowest is $15 in both Saskatchewan and Alberta.