Minimum wage hike adds pressure to small businesses as new costs take effect

Charlottetown, September 30, 2024 – With additional costs hitting small businesses in Prince Edward Island through the 6.7% minimum wage increase and the new mandatory employer-paid sick days policy on October 1, government needs to adopt more predictable policies, says the Canadian Federation of Independent Business (CFIB). 

“Small businesses continue to experience cost pressures. Two minimum wage hikes in a single year are hard enough and hardly necessary but piling on mandatory employer-paid sick leave at the same time only makes it tougher for small businesses,” said Frederic Gionet, Senior Policy Analyst at CFIB. 

Recent CFIB surveys reveal that 83% of small business owners are concerned about the financial impact of steep minimum wage hikes. Six in ten businesses have already raised prices due to wage increases, further contributing to inflation and the rising cost of living. 

CFIB continues to call on the provincial government to review its policy. Minimum wage increases should be linked to median wage growth and only occur once a year. 

“The arbitrary increases over the years have decoupled the minimum wage from what’s actually happening in the labour market,” added Gionet. “Government need to look at alternative targeted measures such as reducing personal income tax rates and expanding tax credit for low-income earners so they can retrain a larger share of their income.” 
 
CFIB’s report, Affordability, minimum wages, and living wages: Striking a balance for small businesses can be viewed here. 

For media enquiries or interviews, please contact: 
Frédéric Gionet, CFIB 
506-961-2793 
frederic.gionet@cfib.ca 

About CFIB 
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region, with 900 in Prince Edward Island. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.