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 makes it the second-lowest minimum wage out of the Atlantic provinces, ahead of only Saskatchewan. While employers are free to pay their staff more than the set minimum wage, they cannot reduce their hourly wage below $15.30. The minimum wage in New Brunswick is indexed to the consumer price index, which grew by 3.6% in 2023.

New Brunswick's minimum wage increased to $15.30 per hour from $14.75 on April 1, 2024

The minimum wage in New Brunswick applies to all workers paid by salary, commission, and piece work, who are eligible to receive at least the minimum wage for every hour they work. However, there are special minimum wage rates for certain categories of employees, such as those in government construction work and counsellors and program staff at residential summer camps. Additionally, employers can require staff to work overtime, but they must compensate employees for all overtime hours at the minimum overtime wage rate, which is currently $22.95 per hour.

The increase in the minimum wage in New Brunswick is part of the provincial government's effort to ensure that wages are competitive within Atlantic Canada. According to New Brunswick's Post-Secondary Education, Training and Labour Minister, Arlene Dunn, "Predictable minimum wage increases, which we established in 2019, protect earners from increases in inflation and help businesses to be better prepared for increases when they occur."

Despite the increase, New Brunswick's minimum wage falls short of what is considered a living wage. According to a report by the Human Development Council, the living wage in four New Brunswick cities is more than $20 per hour, with the highest being $24.50 in Fredericton and the lowest being $21.65 in Bathurst. The report highlights the need for government subsidies and grants to increase with inflation to ensure that all individuals can live as fully participating members of their communities.

The minimum wage in New Brunswick is the lowest an employer can legally pay their employees

The minimum wage in New Brunswick is the lowest amount that employers can legally pay their employees. As of April 1, 2024, the minimum wage in the province increased to $15.30 per hour from the previous rate of $14.75. This change means that New Brunswick now has the second-lowest minimum wage in the Atlantic provinces, with only Nova Scotia's minimum wage of $15.20 being lower.

While employers in New Brunswick are allowed to pay their staff more than the set minimum wage, they cannot reduce the hourly rate below $15.30. This minimum wage rule applies to all workers paid by salary, commission, or piece work, ensuring they receive at least the minimum wage for every hour worked.

It is important to note that the minimum wage in New Brunswick does not apply to all industries uniformly. Special minimum wage rates exist for certain categories of employees, such as those in government construction work (including road, bridge, and building construction) and staff at residential summer camps.

The minimum wage in New Brunswick is determined by the province's Labour Standards Act (LSA), which outlines the regulations surrounding minimum wage entitlements. Despite the recent increase, New Brunswick's minimum wage still falls short of what is considered a living wage in the province. According to a report by the Human Development Council, the living wage, which refers to the income required for two working adults to support a family of four, is significantly higher than the current minimum wage.

The report highlights the gap between the minimum and living wages in four New Brunswick cities: Fredericton ($24.50), Saint John ($23.35), Moncton ($22.75), and Bathurst ($21.65). The government has committed to reviewing the indexing of minimum wage increases to the consumer price index every two years to address this discrepancy.

The minimum wage in New Brunswick is outlined in the Labour Standards Act (LSA)

The minimum wage in New Brunswick increased to $15.30 per hour from $14.75 per hour on April 1, 2024. Employers must pay their staff at least the minimum wage, but they are free to pay more. This applies to all workers paid by salary, commission, or piece work, who are eligible to receive at least the minimum wage for every hour worked.

There are, however, special minimum wage rates for certain categories of employees, including those in government construction work (road, bridge, and building construction) and counsellors and program staff at residential summer camps.

The LSA also outlines the rules around overtime. Employers can require their staff to work overtime but must compensate employees for all overtime hours worked at the minimum overtime wage rate, which is one-and-a-half times the minimum wage. This rate increased to $22.95 per hour from $22.13 per hour.

Additionally, the LSA includes provisions for a minimum reporting wage. If an employer asks an employee to report to work, they must pay the greater of three hours' pay at the minimum wage or the minimum overtime rate for those three hours, or the hours worked by the employee at their regular wage rate.

All workers in New Brunswick are eligible to receive at least minimum wage for every hour worked

As of April 1, 2024, the minimum wage in New Brunswick is $15.30 per hour, up from $14.75 per hour. This means that all workers in New Brunswick are eligible to receive at least $15.30 for every hour worked. This includes workers paid by salary, commission, and piece work. It is important to note that employers cannot pay their staff less than the set minimum wage, but they are free to pay more.

While the minimum wage in New Brunswick applies to most workers, there are some exceptions. For example, certain categories of employees in government construction work (including road, bridge, and building construction) and counsellors and program staff at residential summer camps are subject to special minimum wage rates. These workers do not have fixed working hours, and their hours fluctuate depending on their duties.

In addition to the minimum wage, workers in New Brunswick are also entitled to overtime pay and holiday pay under certain conditions. For example, employers can require staff to work overtime, but they must compensate employees for all overtime hours worked at a rate of one-and-a-half times the minimum wage. Similarly, employees who work on statutory holidays are eligible for special pay, such as Family Day and Canada Day.

The minimum wage in New Brunswick is reviewed and adjusted annually based on the Consumer Price Index. This ensures that workers' wages keep up with inflation and the cost of living. The province's Labour Standards Act (LSA) outlines the rules and entitlements related to minimum wage, overtime, and holiday pay.

New Brunswick's minimum wage is still far lower than the 'living wage' of over $20 an hour

New Brunswick's minimum wage increased to $15.30 per hour from $14.75 per hour on April 1, 2024. While this is a step in the right direction, it is still far from the living wage of over $20 an hour that many residents require.

The minimum wage is the lowest hourly rate that employers can legally pay their employees. In contrast, the living wage is the hourly rate that a household needs to cover basic needs and live with dignity. It includes costs such as housing, food, transportation, education, and childcare.

In 2022, the minimum wage in New Brunswick was $13.75, which was the highest hourly rate among the Atlantic provinces at the time. However, even then, it was still significantly lower than the living wage. The Human Development Council, an organization focused on social issues in New Brunswick, calculated the living wage in four cities in the province: Bathurst ($17.50 per hour), Moncton ($19.30 per hour), Saint John ($18.18 per hour in 2018), and Fredericton ($21.20 per hour). These rates are substantially higher than the current minimum wage, highlighting the gap between the minimum and living wages.

The gap between the minimum wage and the living wage is a cause for concern, as it means that many residents of New Brunswick are struggling to make ends meet. Even with the recent increase, New Brunswickers on minimum wage face challenges in covering their basic needs. This situation is exacerbated by the high inflation rates impacting the province. Due to record inflation levels, the living wage rates in New Brunswick have increased at the most rapid pace ever recorded.

While the provincial government has acknowledged the rising cost of living and expressed a commitment to reducing poverty, concrete plans for further minimum wage increases remain unknown. This uncertainty leaves many residents of New Brunswick facing financial challenges and struggling to afford their basic necessities.

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