February 23, 2024

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$20 minimum wage: A bad idea for small businesses, employers fear

$20 minimum wage: A bad idea for small businesses, employers fear

The idea of ​​a $20 minimum wage doesn’t sit well with business leaders, as such an increase would exceed $1 billion, harming small businesses and putting pressure on consumer spending.

Based on the number of hours worked at the minimum wage in 2022, the calculation by the Canadian Federation of Independent Business (CFIB) would cost employers an additional $1.09 billion.

“The decision regarding the minimum wage increase that will soon be taken by the Minister of Labor must aim for balance,” François Vincent, vice-president for Quebec at the CFIB, said in a press release on Tuesday.

A 31% increase in the minimum wage is unmistakable in having negative impacts on the Quebec economy, according to the CFIB, and Legault is asking the government to evaluate the impacts of a substantial increase in the minimum hourly wage to $18 or $20.

“Such an increase would involve $11,373 in direct additional costs to an employer to hire one full-time minimum wage person,” a CFIB official commented.

To better support them when the minimum wage increases, SME managers propose that Quebec reduce the tax burden (79%), lower wage taxes (73%) or tax (58%) to provide employment credits.

“The weakness of Quebec’s SMEs and the inflationary environment should seriously concern the Quebec government, which should look at both sides of the coin and avoid accepting a sharp increase in the minimum wage,” Mr. Vincent added.

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