Quebec's minimum wage goes up in May but still isn't enough to live on, a new study finds
As May rolls in, Quebec's minimum wage workers will see a modest paycheck increase. The provincial minimum wage is set to rise by $0.50, bringing it to $15.75 per hour.
But, according to a new study by the Institut de recherche et d’informations socio-économiques (IRIS), that boost is more of a Band-Aid fix than a cure for the financial woes many face.
IRIS' new viable income report, released on April 29, paints a grim picture of what it really costs to live poverty-free in Quebec. A single person needs an annual income between $30,738 and $43,609 to achieve a dignified standard of living — a far cry from what full-time work at the new minimum wage would provide. In Montreal, that translates to $38,479 for a single person, and $81,999 for a family with two adults and two children.
"We tend to think working full-time should lift individuals out of poverty, but our economic structure supports a category of working poor," said IRIS researcher Eve-Lyne Couturier, who co-authored the study.
Someone earning the new minimum wage would have to work far beyond 50 hours a week to reach the lower threshold of the viable income range that allows people to live with dignity, "make choices and handle unforeseen expenses," she said.
The gap between that ideal and reality is growing, however, especially in urban areas like Montreal, where living costs have surged by 19.3% over the past year.
The study also introduced a moving penalty to this year's calculations, reflecting Quebec's rental market. Families on the move, often due to growing household sizes or eviction, are especially pinched.
In Montreal, housing costs for such families has jumped by 25% on average, a figure that overshadows the data provided by the Canadian Mortgage and Housing Corporation (CMHC), which IRIS said can often underestimate actual expenses.
Quebec Labour Minister Jean Boulet announced Quebec's minimum wage increase in January, pointing to the economic instability in sectors like retail and hospitality. "Raising wages significantly could strain employers too much, leading to closures and adverse economic effects," he said.
While Quebec's new rate of $15.75 per hour edges slightly above 50% of the median provincial salary, it still trails behind the federal minimum of $17.30 per hour applicable in Crown-regulated sectors.
According to IRIS, achieving a dignified standard of living in Quebec requires a minimum hourly wage ranging from $20 in Trois-Rivières to $30 in Sept-Îles for a single person working full-time. In Montreal, the bar is set at $27 per hour minimum.
By comparison, British Columbia and Ontario have set their sights higher with planned increases to $17.40 per hour as of June 1 and $17.20 per hour on October 1, respectively.
As inflation continues to nibble away at purchasing power, Quebec's minimum wage increase will undoubtedly help some. Still, for many more, it may be a reminder about the distance to go before earning a "viable income" is a lived reality.
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