Committee Recommends Three-year Increase for Minimum Wage

Nova Scotia's Minimum Wage Review Committee has recommended a three-year increase for minimum-wage earners.

The committee of employer and employee representatives is recommending annual increases that will have minimum wage reach $9.65 per hour by Oct. 1, 2010.

"The social prosperity framework requires initiatives that will make a measurable difference in improving the lives of Nova Scotians," said Mark Parent, Minister of Environment and Labour. "That is why I am pleased with the committee's minimum-wage recommendations and look forward to making a decision shortly."

"Government is committed to reducing poverty in Nova Scotia and the committee's recommendations to increase minimum wage to $9.65 per hour by 2010, is a big step in that direction," said Judy Streatch, Minister of Community Services.

In 2007, the Minister of Environment and Labour asked the committee to look at a formula to determine annual increases in minimum wage for more predictability in setting budgets and projections for costs and income.

The committee recommended the following increases to minimum wage over the next three years:

• May 1, 2008 to March 31, 2009: 6.5 per cent increase to $8.10 per hour.
• April 1, 2009 to March 31, 2010: 6.2 per cent increase to $8.60 per hour.
• April 1, 2010 to Sept.30, 2010: 6.9 per cent increase to $9.20 per hour.
• Oct.1, 2010 to Mar.31, 2011: 4.8 per cent increase to $9.65 per hour.

If the recommendations are adopted, by October 2010, minimum-wage employees would earn more than the low income cut off, a commonly used poverty indicator. After 2010, the committee recommends minimum wage be adjusted annually based on the Consumer Price Index.

If economic indicators change dramatically, modifications to the annual rates can be recommended. The committee will continue to meet annually to monitor economic indicators and examine other issues, such as a lower minimum wage for employees who receive tips while serving alcohol.

About 22,000 Nova Scotians work for minimum wage.

The public is encouraged to comment on the report by March 3. For a copy of the report visit www.gov.ns.ca/enla or call 1-888-315-0110.