British Columbia: Minimum wage increases to be based on Consumer Price Index

The British Columbia Employment Standards Act (ESA) will soon be amended to provide for an annual adjustment to the minimum wage rate, calculated based on changes in the annual average Consumer Price Index.

The government of British Columbia previously announced that the general minimum wage will be increasing from $16.75 to $17.40 per hour effective June 1, 2024. This represents a 3.9 percent increase, consistent with British Columbia’s average rate of inflation in 2023. Moving forward, the ESA will automatically provide for an annual adjustment to the minimum wage equal to the percentage year-over-year change in the All-Items Consumer Price Index for British Columbia.

On March 14, 2024, British Columbia Bill 2, the Employment Standards Amendment Act, 2024 received Royal Assent and will come into force by regulation of the Lieutenant Governor in Council. Bill 2 amends the ESA to automatically provide for such future annual adjustments to all minimum wage rates on June 1 each year. An adjustment to the minimum wage rate will be made only when, based on the percentage change in the All-Items Consumer Price Index for British Columbia, there should be an increase to the minimum wage.

The BC Ministry of Labour will publish the adjusted minimum wage rates each year on a publicly accessible website.

For further information, please contact any member of the DLA Piper Canadian Employment and Labour Law Service Group listed here.