Saturday, April 30, 2011

B.C. Minimum Wage Increases


Minimum Wage Increases In B.C.  
May 1, 2011

About 52,000 workers in the province of B.C. will be getting a wage increase tomorrow (May1) as one of three scheduled increases are implemented. When the third increase takes effect, in May 2012, the minimum wage will have increased by 28%.

The current wage of $8.00 per hour increases to $8.75 on May 1, goes to $9.50 on Nov. 1, 2011 and finally to $10.25 on May 1, 2012. The training wage of $6,00 per hour will no longer be in effect either.
Fallout?
There is always some concern about job loss when the minimum wage is increased, as usually is does not only lift the wage of the minimum wage worker, but there is an expectation that workers who are currently earning $8.75 an hour will expect their wage to rise also. After all, their employer was saying they were worth more than minimum wage before and nothing has changed except the level of the minimum wage.

Nanaimo has experienced some alarming spikes in unemployment rates over the last two months, which for the most part are going unexplained. It will be worth watching to see if this wage increase puts any more pressure on the rising unemployment rate. The loss of the training wage will take away any edge the inexperienced, first time employee has had in the past. So, like all policies there is an upside and a downside.

Bottom Line

How much more money does that put in the minimum wage earners pocket (before taxes) and presuming there is no loss of hours ?

Based on working a total of 40 hours per week the following calculations apply for the increase in gross earnings:

May 1, 2011 - -$0 .75 x 40 hrs. = $30.00/wk = $129.00/mo. = $1548.00/yr.

Nov. 1, 2011 - - $1.50 x 40hrs. = $60.00/wk = $258.00/mo. = $3096.00/yr.

May 1, 2012 - - $2.25 x 40 hrs. = $90.00/wk = $387.00/mo. = $4644.00/yr.

allvoices

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