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As always, to make sure your business is prepared and stays in compliance, we recommend that you discuss these upcoming changes to the Quebec minimum wage with your accountant and lawyer. This article does not constitute legal advice.
What is the minimum wage in Quebec for 2023?
As of May 1, 2023, Quebec’s general minimum wage was increased to $15.25 per hour for most employees, which is currently $1.40 less than the federal minimum wage). Federal minimum wage only applies to employees working in industries regulated by the government, such as banking and transportation. Provinces handle other items, such as business applications and setting the general minimum wage for all other industries.
However, there are exceptions and other considerations:
- Students under 18 as of May 1, 2023, must be paid $15.25/hour, the same as adult employees. Any overtime hours must follow applicable rules.
- Employees receiving gratuities must receive a minimum wage of $12.20/ hour. The tipped worker minimum wage became effective May 1, 2023.
Is the minimum wage going up in Quebec?
Quebec increased the minimum wage to $15.25 in May 2023 , and no further increases are expected until at least 2024.
How should small business owners prepare for changes?
Minimum wage increases are great news for employees but not necessarily for business owners. If you’re worried about how upcoming changes might affect your business finances:
- Audit your expenses: Check your cash flow in detail to ensure you avoid common business mistakes and create a hiring plan that you can afford. In some cases, you may find that hiring temporary workers as needed is less expensive than taking on full-time regular staff.
- Make sure you hire and keep the right employees: Replacing an employee costs a lot. You decrease the total cost associated with recruiting by retaining valuable employees. Look for candidates who have good track records, come recommended, and fit in with the company culture. Once they’re onboarded, make sure you build a relationship and provide paths for your employees to grow and thrive; it makes it more likely they’ll stay in their roles.
- Increase prices: Increasing prices is a great way to boost your cash flow. According to Square’s 2023 Future of Retail report, given the current economic climate, 88% of consumers say they’d understand if their favourite local business raised its prices.
- Update tech: Consider automating certain aspects of the work and find ways to reduce production costs. Investing in small business team management software can help free up your time, better schedule your employees, and, best of all, is easy to learn.
Square is here to help you with any resources you need, so you and your business can thrive.
