P.E.I. Reviews Minimum Wage Beyond Inflation Factors

Prince Edward Island's Employment Standards Board is reviewing the province's minimum wage after the rate rose to $17.30 an hour on Oct. 1, with workers, employers and advocates examining costs, inflation and economic conditions.

The annual review will guide recommendations to the provincial government, and submissions from workers, employers and others are being accepted until Oct. 30 by mail or email.

Christine Saulnier, Nova Scotia director of the Canadian Centre for Policy Alternatives and co-author of its P.E.I. living wage calculations, said the review should examine costs beyond overall inflation.

"I’m pleased to see the increase. P.E.I. has been trying to ensure that the minimum wage at least keeps up with overall inflation, which is important," said Christine Saulnier, Nova Scotia director of the Canadian Centre for Policy Alternatives.

"But also looking a little more closely at the inflation question, just using the overall index is likely not enough to be supporting minimum wage workers." said Christine Saulnier, Nova Scotia director of the Canadian Centre for Policy Alternatives.

Statistics Canada data cited in the report showed rental inflation in P.E.I. reached 6.5 per cent year over year in August, compared with 4.4 per cent for all-items inflation. Saulnier said housing costs take a major share of low-income household budgets.

"When we think about who is working minimum wage, your budget is likely … about 50 per cent of it going on rent," said Christine Saulnier, Nova Scotia director of the Canadian Centre for Policy Alternatives.

Saulnier said P.E.I.'s minimum wage is the highest in Atlantic Canada but remains below the centre's 2025 weighted average living wage estimate of $22.77 an hour.

Wayne Vessey, chair of P.E.I.'s Employment Standards Board, said the panel weighs living costs, economic conditions, poverty measures and business pressures when making recommendations.

"I also understand the position, too, of employers because their costs have increased," said Wayne Vessey, chair of P.E.I.'s Employment Standards Board.

Saulnier said businesses that adopt living wage practices have reported lower employee turnover, which can reduce recruitment and retraining costs.

"It also helps in recruiting quality employees," said Christine Saulnier, Nova Scotia director of the Canadian Centre for Policy Alternatives.

She added that retaining employees can be another benefit for companies adopting higher wage standards.

"They stay with the firm longer." said Christine Saulnier, Nova Scotia director of the Canadian Centre for Policy Alternatives.

P.E.I.'s current minimum wage is scheduled for another 30-cent increase in April 2027, according to the province's review process.