3 outcomes for employees when minimum wage goes to $17.40 in BC in June 2024?
On the face of it, when minimum wage increases, those earning less than the new minimum get a raise.
Straight forward, right?
Not so much. It does have a ripple effect except that ripple effect is not evenly enjoyed by all wage earners.
With minimum wage increasing 3.9% to $17.40 in June 2024, this could create awkward, happy or disappointing outcomes for employees in British Columbia.
According to this r/britishcolumbia Subreddit thread, here are three typical outcomes from past minimum wage increases:
1. No raise
Some Redditers reported if earning more than minimum wage did not receive a raise when minimum wage increased. Some asked and were rejected.
2. Ask for a raise if previously earning more than minimum wage
This too is common. If earning a buck or two above mininum wage which then means earning minimum wage, it hardly seems fair, right? Some employers won’t automatically offer a wage increase so some Redditers asked. Some were given it. Others not.
3. Automatic equivalent wage increase for everyone
This is where it can come across as unfair. Some employers and perhaps unions have arrangements where everyone enjoys a wage/salary increase equivalent to the percent minimum wage increase. In June 2024, minimum wage will go up 3.9% which under this type of arrangement, all employees will receive a 3.9% increase. Probably means prices for whatever the business sells will go up 3.9% which naturally has its own ripple effect, but that’s a discussion for another day.
How much will the new minimum wage be per year with full time hours?
Pretty simple calculation. $17.40 times 40 hours per week times 52 weeks = $36,192 per year.
FYI, a quick n’ dirty way to figure out annual earnings from an hourly wage is to double the hourly and multiple by 1,000. In this case, $17 x 2 x 1,000 = $34,000. Not perfect but darn close.
Minimum wage increases are becoming an annual thing
In 2019, minimum wage increased to $13.85. Since then, there’s been an increase every year. Here are the increases since 2019:
- June 1, 2024 – $17.40 per hour
- June 1, 2023 – $16.75 per hour
- June 1, 2022 – $15.65 per hour
- June 1, 2021 – $15.20 per hour
- June 1, 2020 – $14.60 per hour
- June 1, 2019 – $13.85 per hour
Come June 2024, minimum wage will have increased 25.6% since 2019.
