Federal Government of Canada released a new information that sounded like April fools joke! According to the Federal Governments website, on 01. April.2023 minimum wage to be raised to $16.65 per hour.
On April 1, 2023, the federal minimum wage will raise from $15.55 to $16.65 per hour in order to keep up with inflation. The hike will aid in making life more reasonable for the nearly 26,000 Canadian workers who earn less than the going rate, according to the Consumer Price Index, which increased 6.8% in 2022.
Minister of Labour, Seamus O’Regan Jr. said: “The cost of living is rising, so we’re making sure that wages keep going up too. We’re looking after workers, because that’s how you grow the economy and create more prosperity for everyone.”
As of April 1, private sector companies subject to federal regulation are required to update their payroll records to reflect the new rate in order to ensure that workers and interns are paid appropriately.
Employers must use the higher pay if the provincial or territory minimum wage rate is higher than the federal minimum wage.
Employers in the banking industry, postal and courier services, interprovincial air, rail, and maritime transportation are all subject to this wage rise.
Higher minimum wages linked to job losses
As federal government increases the minimum wage, many provinces struggle to create new jobs for young people. In contrary, in the past increase in minimum wage showed a decrease in jobs.
After being hidden for three years, the February 2020 report was finally issued by the UCP administration on Friday morning. When Albertas Premier Jason Kenney’s administration assumed office in 2019, it charged a provincial panel with investigating the NDP government’s decision to raise the minimum wage to $15 an hour in 2019. Although Alberta’s minimum wage increased from $11.20 an hour in 2015, when it was matched for the lowest rate in the nation, to a Canada-leading $15 an hour in 2018, the analysis concludes that a “substantial” percentage of employees saw increases in pay. Nevertheless, it also discovered that the program cost almost 21,000 Albertans between the ages of 15 and 24 their jobs. Older workers were shown to be statistically unaffected by job impacts, which were substantially more pronounced outside of Calgary and Edmonton.
Another April fools day increase
April fools day it is and this day was the day of choice for Federal Government to increase alcohol taxes as well! From April.01.2023 Canadians will have to pay 6.3% more in taxes when buying alcoholic baverages.
Many consumers and retailers alike are worried that 6.3% in alcohol tax increase can significantly change their quality of living. While alcohol is not a basic human necessity, it is definitely someones livelihood. If consumers reduce spending on alcoholic beverages, Canadian distilleries and breweries will feel the outcome. LCBO, Beer Stores and other retailers across Canada will possibly reduce their staff or at least will not hire new employees.
It’s like you take a sip and the second sip goes to Government
Beer and other alcoholic beverage producers did not like the new imposed tax increase idea at all. Twitter add shows their disapproval.
Reaction of ordinary Canadians to imposed alcohol tax increase
While alcoholic baverage producers predict decrease in sales and in revenue, ordinary Canadians seem to take this new tax increase very calm and relaxed! Another tax increase, another reduction in quality of life, oh well.