P.E.I. minimum wage still falling short of livable, says think-tank
CBC
P.E.I.'s minimum wage will see an increase this year of more than $3 an hour since 2020, but remains well short of a living wage and is gaining little ground, says the Canadian Centre for Policy Alternatives.
The group's Nova Scotia chapter released its latest study on living wage — listing what was required in P.E.I., Nova Scotia and Newfoundland and Labrador — on Wednesday.
The report set the living wage on P.E.I. at $22.76 per hour, leaving the current minimum wage of $15.40 more than $7 short.
The centre last looked at the P.E.I. wage in 2020, when the minimum wage was $12.85. That report set the living wage at $19.30.
In both reports, the minimum wage was about 67 per cent of the centre's living wage. On Oct. 1 the minimum wage will increase to $16, bringing it to 70 per cent of the living wage.
"Provincial governments should plan to increase the minimum wage to $20 as soon as possible," the centre recommends in its report.
The report calculated a living wage for Nova Scotia of $26.53, and of $25 in Newfoundland and Labrador.
The report said that despite business complaints that higher minimum wages lead to job losses and inflation, real world research has found that a higher minimum wage has no impact on job losses, and in some studies led to an increase in employment in low-wage areas.
"The fact is that raising the minimum wage is a key action to reduce income inequality and gender and racial inequalities," the report said.
"We cannot underestimate the positive impacts of providing workers with a living wage and standards on their health and ability to bring their best to the workplace."
The living wage in the report is calculated for two parents working full-time, and earning to support themselves and two young children. It includes some government transfers in the calculation of the family's revenue, such as the Canada Child Benefit, as well as deductions such as EI and CPP.
Expenses taken into account include food, shelter, transportation, child care and clothing, but do not include loan payments or saving for retirement.
Child care costs include day care for a two-year-old, and after school and summer programs for a seven-year-old.
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