New Brunswick's Minimum Wage Explained

As of April 1, 2024, the minimum wage in New Brunswick is $15.30 per hour, up from $14.75. This is the second-lowest minimum wage in the Atlantic provinces, ahead of only Nova Scotia, where the minimum wage is $15.20. The minimum wage in Newfoundland and Labrador is $15.60, while Prince Edward Island's is $15.40. The minimum wage in New Brunswick is indexed to the previous year's consumer price index, which grew by 3.6% in 2023.

Minimum wage in New Brunswick increased to $15.30 per hour from $14.75 on April 1, 2024

The minimum wage in New Brunswick, Canada, increased to $15.30 per hour from $14.75 on April 1, 2024. This is a 55-cent increase, which still falls short of what is considered a living wage in the province. The previous year, the minimum wage in New Brunswick rose by $1, from $13.75 per hour.

The minimum wage in New Brunswick is indexed to the previous year's consumer price index (CPI), which grew by 3.6% in 2023. The CPI is used to protect earners from inflation and help businesses prepare for wage increases. However, despite these annual adjustments, the minimum wage in New Brunswick is still one of the lowest in the country.

The Common Front for Social Justice in New Brunswick has stated that the increase is insufficient, and there remains a large gap between what individuals need to afford basic necessities, such as food and shelter. According to Janelle LeBlanc, executive director of the Common Front for Social Justice, "a living wage in New Brunswick is above $20 an hour right now in many cities and communities."

In contrast, the Canadian Federation for Independent Business has expressed concern about the additional costs for businesses. Louis-Philippe Gauthier, vice-president of the Canadian Federation for Independent Business, has suggested that tax relief could be helpful to businesses in this situation.

The minimum wage in the province is indexed to the previous year's consumer price index

The minimum wage in New Brunswick is currently $14.75 per hour, which is among the lowest rates in Canada. On April 1, 2023, the province increased its minimum wage from $13.75 to $14.75 per hour. This rate still falls short of what is considered a living wage, which, according to a report by the Human Development Council, is $24.50 in Fredericton, $23.35 in Saint John, $22.75 in Moncton, and $21.65 in Bathurst.

Beginning in 2024, future minimum wage increases in New Brunswick will be based on the percentage change in the province's Consumer Price Index (CPI). The CPI is a measure of inflation that estimates the average change in the prices of products consumed by households between two given periods. It is based on the observation of a fixed basket of goods and services.

In June 2023, the CPI in New Brunswick reached 157.6, representing an increase of 21 points compared to June 2020. The CPI in 2022 was 152.1, and the average inflation rate in Canada that year was approximately 6.8% compared to the previous year. The CPI in New Brunswick grew by 3.6% in 2023, and the minimum wage has increased by 36% since 2019.

Indexing the minimum wage to the CPI ensures that earners are protected from inflation and helps businesses better prepare for wage increases. The government has legislated that this indexing be reviewed every two years.

The federal minimum wage only applies to employees in government-regulated industries

In New Brunswick, the minimum wage was increased from $13.75 to $14.75 per hour on April 1, 2023, which is $2.55 less than the federal minimum wage. This increase is great news for employees but not necessarily for business owners. To prepare for the changes, business owners can audit their expenses, hire and retain the right employees, increase prices, and update their technology.

While the minimum wage in New Brunswick is set by the province, it is important to note that the federal minimum wage only applies to employees working in industries regulated by the government, such as banking and transportation. For other industries, the minimum wage is set by the provinces, which handle business-related items such as business licensing.

In the United States, the federal government sets a standard minimum wage that applies to all employees. This federal minimum wage is currently $7.25 per hour and is enforced by the U.S. Department of Labor. However, states and localities can also set their own minimum wage rates, and employers are required to pay their employees the highest applicable rate. For example, in Ohio, the minimum wage is $10.45 per hour, which is higher than the federal minimum wage.

There are some exceptions to the minimum wage laws. For instance, minimum wage laws do not apply to independent contractors, and there are different minimum wage rates for tipped employees and youth. Additionally, some states and localities have a "living wage," which is higher than the minimum wage and is intended to provide employees with enough income to avoid poverty.

Employers can require staff to work overtime but must compensate at the minimum overtime wage rate

As of April 1, 2024, the minimum wage in New Brunswick, Canada, is $15.30 per hour, an increase from $14.75. This rate is still among the lowest in the country. The minimum wage in New Brunswick is adjusted annually based on the percentage change in the province's Consumer Price Index (CPI).

While employers can pay their staff more than the set minimum wage, they cannot pay less. Most employees in New Brunswick must be paid at least the provincial minimum wage. This includes salaried, commissioned, and piece-work employees, who must be compensated for every hour worked with reference to the minimum wage.

Employers can require their staff to work overtime, but they must compensate employees for all overtime hours worked at the minimum overtime wage rate. The minimum overtime wage rate in New Brunswick is one-and-a-half times the minimum wage, which equates to $22.95 per hour. This rate is applicable when an employee has worked more than 44 hours in a given week. It is important to note that New Brunswick does not allow employees to bank their overtime hours.

Certain occupations are exempt from the minimum wage regulations, including specific individuals employed in government construction projects and counsellors and other staff working at residential summer camps.

Employees in certain industries are exempt from minimum wage regulations

As of April 1, 2023, the minimum wage in New Brunswick is $14.75 per hour, a $1 increase from the previous year's $13.75. This is $2.55 less than the federal minimum wage. Most employees in New Brunswick must be paid at least this amount, including salaried, commission, and piece-work employees. However, there are exceptions to minimum wage regulations, and certain employees are exempt.

• Certain individuals employed in government construction projects.
• Counsellors and other staff who work at residential camps during the summer.
• Some government and construction workers.

It is important to note that the federal minimum wage only applies to employees in industries regulated by the government, such as banking and transportation. The provinces handle other business-related items, including business licensing and setting the general minimum wage for all other industries.

In addition to the exemptions mentioned above, New Brunswick also has unique overtime pay regulations. Unlike most provinces, New Brunswick has a minimum overtime wage rate, and employees earning above this amount are ineligible for overtime compensation. The overtime rate kicks in when an employee has worked more than 44 hours in a week, as there is no daily overtime threshold. Certain occupations, such as government and construction workers, as well as camp counselors, are exempt from overtime regulations or have different rules.

The minimum wage requirements in New Brunswick, as in most provinces, are quite detailed and technical. While this provides an overview of the exemptions to minimum wage regulations, it is always recommended to consult with an accountant or lawyer to ensure compliance with the Employment Standards Act and other relevant legislation.

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