Minimum Wage Increase in BC Effective June 1st 

Attention British Columbia businesses! There’s an important change coming into effect on June 1st, 2024: the provincial minimum wage is increasing to $17.40 per hour. This blog post will break down everything you need to know about the minimum wage increase in BC and how it impacts your business!

What’s Changing? 

1. Effective Date: June 1st, 2024 
2. New Minimum Wage: $17.40 per hour 

This means that as of June 1st, any employee you have working in BC who is currently making minimum wage will be entitled to a raise, bringing their hourly rate up to $17.40. This represents a 3.9% increase from the previous minimum wage of $16.75 per hour. This represents a 3.9% increase, consistent with BC’s average rate of inflation in 2023. 

Why the Increase? 

The primary reason for the minimum wage increase in BC is to help workers keep pace with inflation. Inflation is the rise in the cost of everyday goods and services. Over the past year, inflation has been on the rise in Canada, meaning things like groceries, rent, and transportation are costing more. This increase in the minimum wage aims to ensure that minimum wage earners have the income they need to afford basic necessities. 

Starting in February 2024, the government amended the Employment Standards Act to make annual minimum wage increases automatic. Every year, the increase will be based on the inflation rate of the previous year. This way, both employers and workers know what to expect. And, as a result, minimum wage earners can count on raises that keep pace with inflation. 

How Does the Minimum Wage Increase in BC Impact My Business? 

The impact of the minimum wage increase on your business will depend on several factors, such as: 

1. The number of minimum wage employees you have: If you have many currently making minimum wage, the increase will have a bigger impact on your payroll costs. 
2. Your existing wage structure: If you already pay your employees above the minimum wage, the impact may be minimal. However, it may prompt you to review your wage structure to ensure internal pay equity. 
3. Your industry: Some industries, such as retail and hospitality, typically rely more heavily on minimum wage workers. 

What Can You Do? 

Here are some steps you can take to prepare for the minimum wage increase: 

1. Review your payroll: Calculate the impact the increase will have on your labour costs. 
2. Update employee wages: Ensure all minimum wage employees are receiving at least $17.40 per hour as of June 1st. 
3. Communicate clearly: Let your employees know about the minimum wage increase and any changes it may mean for their paycheques.
4. Consider your options: Explore options to manage the increased costs, such as reviewing your budget, adjusting scheduling, or exploring efficiencies in your operations. 

Additional Resources 

The BC government website offers a wealth of information on the minimum wage increase. We’ve included a few key resources below: 

1. BC Employment Standards Act 
2. BC’s 2024 Minimum Wage Increase Press Release 
3. Guide to the ESA: Employers Required to Pay Minimum Wage 

Need help navigating the minimum wage increase or want to discuss your specific situation?

Contact our HR experts today for a free consultation!