The Holt government is taking a hard look at how New Brunswick calculates its minimum wage. Right now, the province relies on a formula tied to inflation. Officials are asking for your input to decide if this system still works or requires a complete overhaul.

According to a recent report from CBC News, the current wage of $15.90 is the third lowest in Canada. Since 2019, annual increases have followed the consumer price index. This method makes increases predictable for businesses.

Balancing the Cost of Living

Labour Minister Alyson Townsend says the inflation link acts as a holding pattern. It prevents the need for an in depth study every single year.

“But you have to do an in depth study periodically to make sure you are getting it right with the cost of living,” Townsend told CBC News.

The cost of basic necessities is rising faster than general inflation. The consumer price index rose 1.7 percent in New Brunswick recently. However, the cost of food, health, and personal care grew at 3.1 percent. Shelter costs increased by 2.4 percent.

The Saint John based Human Development Council estimates the true living wage in New Brunswick is $24.77. This creates a massive gap for workers trying to cover basic needs.

What Experts and Employers Want

Different groups have very different ideas on how to fix the formula.

Tobin LeBlanc Haley is an associate professor at the University of New Brunswick. She researches housing and poverty. She argues the minimum wage must increase faster than inflation to close the gap with the living wage.

“We know that more and more folks are relying on food banks as the cost of groceries go up, we know that housing costs are getting more expensive, we know utilities are getting more expensive,” LeBlanc Haley said.

On the other side, employers want predictability and zero political interference. The Canadian Federation of Independent Business wants the wage calculated as a percentage of the median wage in the province.

Frédéric Gionet is the federation director for Atlantic Canada. He believes the government needs a hands off approach.

“There is a lot of incentive for governments to go beyond that and go around their own rules,” Gionet said. “So that is why we believe that there should be more of a hands off approach and have a formula that works on its own.”

Have Your Say

The provincial consultation runs until early October. Townsend plans to have any new changes decided and implemented before the next scheduled minimum wage increase on April 1, 2027.

“I would just encourage everybody to talk to us, send us your thoughts, because we really do want to hear them,” Townsend said.

Frequently Asked Questions

What is the current minimum wage in New Brunswick?

The minimum wage in New Brunswick is currently $15.90 per hour.

How does the province calculate minimum wage increases right now?

Since 2019, the province has linked annual minimum wage increases to the consumer price index, which measures general inflation.

What is the estimated living wage in New Brunswick?

The Human Development Council in Saint John estimates the living wage required to cover basic necessities is $24.77 per hour.

When will the new minimum wage rules take effect?

The government will implement any changes before the next scheduled minimum wage increase on April 1, 2027.