Sonny Gallant also said during Tuesday’s question period that any future changes to the minimum wage will always occur on April 1.
“The three (Maritime) provinces have shared that date of April 1 for any future increases,” said Gallant. “It’s very important that the business community is aware of any changes coming in minimum wage increases and there are always consultations before the minimum wage goes up.”
Gallant was responding to a question from Charlottetown-Brighton MLA Jordan Brown.
Brown said he was contacted by a number of small business owners who were “caught off guard” by this year’s minimum wage increase.
The province announced in late February that P.E.I.’s minimum wage would be increased by 25 cents as of April 1.
Related: Minimum wage will rise to $11.25 per hour on P.E.I.
The announcement left business owners with only a month’s notice of the increase, which was also concerning to some due to the two minimum wage raises last year.
“It’s always important for employers to be aware of changes that will impact business operational costs,” said Brown, who asked how the province determined the minimum wage rate.
Gallant said the Employment Standards Act requires a board to review the minimum wage on a yearly basis.
He said many factors are taken into concern.
“One of them is the social and economic effects of the minimum wage rates, the cost of living increase, the economy of the province and of course a reasonable return on investments for businesses,” said Gallant.
P.E.I.’s minimum wage now sits at $11.25 an hour, making it the highest in the three Maritime Provinces, which Gallant said will continue to work together on the issue.
“The reason minimum wage is being looked at by the three provinces is for competitiveness, it keeps our work force here,” said Gallant. “This also puts more money into the economy and into the pockets of Islanders.”
