Minimum Wage in Saskatchewan: 2025 Updates

Saskatchewan has the lowest minimum wage in Canada at $15 per hour as of October 2024. However, the province also has a relatively low cost of living compared to other parts of the country. This article will take a look at minimum wage in Saskatchewan, including the current rate, historical increases, how rates are calculated, perspectives from different groups, and more.

Minimum Wage in Saskatchewan for 2025

The current general minimum wage in Saskatchewan is $15 per hour, effective October 1, 2024. Most province employees are entitled to earn at least the minimum wage for each hour worked. Some exemptions will be covered later.

However, it’s important to note that Saskatchewan’s living cost is also among Canada’s lowest. The average housing price in Saskatchewan cities is around $330,800, which is approximately 52% below the national average of $685,809. This helps offset the lower minimum wage to some degree in terms of overall affordability.

Some labour groups have criticized this planned timeline of $15 per hour as too slow. However, business interests have warned against implementing sharp minimum wage hikes too quickly in the name of competitiveness and reducing cost pressures. This is a contentious issue with plausible arguments on both sides.

Source: Saskatchewan Minimum Wage 2025 – loanscanada.ca

How Minimum Wages in Saskatchewan Are Calculated

Saskatchewan determines minimum wage rate changes using an indexation formula that gives equal weight to two key economic indicators:

• Consumer Price Index (CPI) measures consumer inflation and price changes, serving as an indicator of the overall cost of living. A higher CPI signals upward pressure on living expenses.
• Average Hourly Wage (AHW): The AHW tracks general wage growth across all employees in Saskatchewan, helping account for broader labour market conditions.

This formula is calculated yearly, and the result is typically rounded to the nearest five cents. The new minimum wage rate will be announced by June 30 and take effect October 1 for the following year.

What are the Exemptions for Minimum Wage in Saskatchewan

While most employees in Saskatchewan are entitled to the full legislated minimum wage, the following groups are not subject to the general minimum wage rules:

• Farm workers include farming, ranching, market labourers, and garden labourers.
• Babysitters – Exemption applies only to temporary, sporadic, or part-time babysitters.
• Athletes – Those engaged in amateur athletic activities.
• Non-profit volunteers – Volunteers working for registered non-profit organizations.
• People with disabilities – Applies only to specific rehab or training programs run by non-profits or institutions.

These groups account for a relatively small fraction of the workforce. However, employers should be aware of cases where paying below the general minimum wage may be permissible.

Different Perspectives on the Minimum Wage in Saskatchewan

There is an active debate among stakeholders regarding the minimum wage policy in Saskatchewan.

Labor Groups

Labour groups like the Saskatchewan Federation of Labour (SFL) have argued that minimum wage hikes should occur more quickly. The SFL has called for an accelerated path to the $15 minimum wage in 2024 rather than staggered increases. They also want future rates tied to the cost of living after $15 is reached.

These groups generally argue that the minimum wage should provide a “living wage” sufficient to afford reasonable living costs. Rates below this level leave full-time workers struggling.

Government Perspective

The Saskatchewan government has argued that the minimum wage increases will support workers while maintaining a competitive business environment. The Minister of Labour Relations stated that the goal is to balance the needs of both employees and employers.

The government has emphasized that the minimum wage is just one policy lever that helps low-income residents. Others include basic tax exemptions, child benefits, and income support.

Business Interests

Business advocacy groups, such as the Canadian Federation of Independent Businesses, have warned that sharp minimum wage hikes could hurt job creation or force cost cuts.

However, surveys indicate that most customers are willing to accept minor price increases in exchange for better wages. This may ease pressures on businesses somewhat.

The minimum wage debate involves balancing worker living standards and corporate costs. Both sides have reasonable arguments, and the optimal policy is likely somewhere in the middle.

Minimum Wage vs. Living Wage in Saskatchewan

When evaluating the minimum wage’s adequacy, it is useful to compare it to the concept of a “living wage.” The living wage is the hourly pay rate needed to cover basic family expenses within a community. It is calculated based on the actual living costs for different household types.

Recent living wage estimates for Saskatchewan are considerably higher than the current minimum wage:

This suggests that while the minimum wage provides a legally mandated baseline, it falls well short of the pay needed to reasonably get by and participate in society in major cities.

Source: Sask. minimum wage increasing to $15 per hour, tied for lowest among provinces – leaderpost.com

Youth Employment and Minimum Wage in Saskatchewan

There are special regulations around minimum wage and youth employment in Saskatchewan for workers aged 14-15:

• Must complete the Young Worker Readiness Certificate Course
• No limits on hours worked during school breaks
• Max 16 hours per week during school term
• Prohibited from working in specific industries like construction and mining

Here is a summary of the youth employment rules in Saskatchewan:

Additionally, the general minimum employment age in Saskatchewan is 16. Industry restrictions also apply to workers under 18. These special regulations help protect young people while providing opportunities for job experience.

Key Takeaways for Minimum Wage in Saskatchewan

To summarize key facts:

• Saskatchewan currently has the lowest minimum wage in Canada ($15/hour).
• Labour groups argue increases should be faster and tied to living costs.
• Business interests caution against sharp hikes.
• Living wage estimates are above $17 per hour in major cities.
• Special rules apply to youth workers.

The minimum wage will likely continue to be a hot topic in Saskatchewan, with debate over the rate and timing of increases. The province will need to find a middle ground supporting lower-income earners while maintaining a competitive business environment.

The minimum wage in Canada can vary significantly between different provinces and territories at any given time.

• Minimum Wage in Newfoundland and Labrador
• Minimum Wage in British Columbia
• Minimum Wage in Nova Scotia
• Minimum Wage in Ontario
• Minimum Wage in Prince Edward Island
• Minimum Wage in Quebec
• Minimum Wage in Northwest Territories

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