PEI minimum wage to rise May 1
(Mar. 17/08) Prince Edward Island’s minimum wage will rise from $7.50/hour to $7.75/hour on May 1, 2008, and by another $0.25/hour on Oct. 1, 2008.
As a result, employers will see payroll costs increase by more than 6% in less than six months, far outpacing the rate of inflation. Although tiered increases in the minimum wage give employers some advance notice on rising labour costs, minimum wage hikes remain difficult for foodservice operators to absorb because of the labour-intensive nature of the industry. In PEI, nearly 31 cents of every dollar spent at a restaurant goes directly to payroll costs.
In meetings with the government, CRFA underscored the importance of providing employers with adequate notice of wage increases, and called training and tip differentials to recognize the significant cost of training new employees and the greater earning potential of tipped employees. CRFA will continue to carry these messages to key ministers in advance of labour legislation changes expected this fall.
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