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Friday, 20 May 2011 11:38

Sask. minimum wage increasing two bits in September

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The Government of Saskatchewan will increase the province's minimum wage, effective September 1, 2011.

Labour Relations and Workplace Safety Minister Don Morgan announced the minimum wage will increase from $9.25 to $9.50 per hour, which will also result in a corresponding increase to the minimum call-out pay to $28.50. The 2.7 per cent increase represents an average of the 1.4 per cent increase in the Consumer Price Index (CPI) and the four per cent increase in the average hourly wage (AHW).

"Since our government took office in 2007, we have raised the minimum wage by more than the rate of inflation," Morgan said. "In fact, minimum wage has increased by $1.55 an hour or 19.5 per cent since 2007."

Morgan said the government will continue to review the minimum wage in the years ahead and make adjustments as appropriate. The Minimum Wage Board is required by legislation to review the minimum wage and report to the government every two years.

"Our government is also helping low income earners by lowering taxes," Morgan said. "We have cut income taxes for minimum wage earners by hundreds of dollars a year and as a result, thousands of minimum wage earners no longer pay any provincial income tax."

Since 2007, a full-time worker earning minimum wage has benefitted from a 46 per cent reduction in provincial income tax while a part-time minimum wage earner working up to 1,600 hours a year no longer pays any Saskatchewan income tax. Disposable income for both full- and part-time minimum wage earners has increased by approximately 22 per cent as a result of minimum wage increases and reductions to provincial income tax.

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