On October first in Alberta there will be a new minimum wage. What does this mean for business owners with employees?
- The minimum wage rates have been changing yearly on October 1. the last scheduled wage increase will be October 1, 2018.
- If you use minimum or low wage workers you need to be aware that their wage for any hours worked October 1st and after must be at least minimum wage.
- Your bookkeeper will need the hours before the wage change and after the wage change for the payroll this effects
- If you have supervisors who are contracted at minimum wage + a premium their wage should increase also.
- If you pay employees slightly more than minimum wage make sure they are getting at least minimum wage after the increase.
- If your employees are now minimum wage because of the increase but were not before consider how being minimum wage will effect retention and employee satisfaction.
- Do you need help figuring this out? Contact us and we can walk you through it.
Minimum wage rates 2016-2018
The following minimum wage rates are set out in the Employment Standards Regulation:
| Type of employee | October 1, 2016 | October 1, 2017 | October 1, 2018 |
|---|---|---|---|
| Most employees – General minimum wage | $12.20/hour | $13.60/hour | $15/hour |
| Liquor servers (as of Oct. 1, 2016 the liquor server rate was eliminated) | $12.20/hour | $13.60/hour | $15/hour |
| Salespersons (including land agents and certain professionals) |
$486/week | $542/week | $598/week |
| Domestic employees (living in their employer’s home) |
$2,316/month | $2,582/month | $2,848/month |
Who does this not apply to?
The following employees are exempt from minimum wage standards:
- real estate brokers
- securities salespersons
- insurance salespersons paid entirely by commission
- students in a work experience program approved by the Alberta government
- students in an off-campus education program provided under the School Act
- extras in a film or video production
- counsellors or instructors at a non-profit educational or recreational camp for children, handicapped individuals, or religious groups
- farm employees
- municipal police service members
- post-secondary academic staff