Alberta is taking its first step towards a $15 minimum wage by 2018.

On Oct. 1, minimum wage earners will see an increase in their paycheques, as the hourly rate increases from $10.20 to $11.20. The liquor server rate will rise from $9.20 to $10.70 per hour, and will be eliminated next year. Once the differential rate is eliminated, liquor serves will earn the same minimum wage as everyone else.

“We will continue to consult with stakeholders as we move forward on our goal over the next three years,” said Lori Sigurdson, Minister of Jobs, Skills, Training and Labour in a news release on Wednesday. “We have weighed all the input and advice and concerns that were raised and have come up with a moderate, reasonable approach.”

The minimum wage debate has garnered a great deal of attention in Alberta. We crunched the numbers to show how Alberta stacks up with the rest of the western provinces. Take a look.

Minimum wage snapshot: western Canada

Another way to examine minimum wage is in comparison with average hourly earnings.  

Ratio of minimum wage to the average hourly rate 

The graph above shows the ratio of minimum wage to the average hourly wage – for instance Alberta’s minimum wage was 34 per cent of the average hourly wage in 1997. This ratio has historically been lower in Alberta than the other western provinces. The Oct. 1st increase means that ratio will be the highest it’s ever been in Alberta (39 per cent); but it is still lower than the rest of the West.

Fewer than two per cent of Alberta’s employees are paid at the minimum wage rate – the lowest in Canada. Ontario is the highest, at 11 per cent [Ontario’s minimum wage is $11.25 per hour].

Lastly, here’s a detailed look at the minimum wage and average hourly wage rates (current dollars) in Alberta over the last 20 years.

Minimum and hourly wage spread has widened in Alberta

 

Have your say. Take our poll to tell us what you think about Alberta’s move toward a $15/hour minimum wage.

 

Footnotes:

Average hourly wages and minimum wages are expressed in current dollars

The average hourly wage rate for 2015 is an average till August 2015

Minimum wage: is the lowest wage rate that an employer can pay its employees and is dictated by labour laws. Since these laws are under provincial jurisdiction, each Canadian province sets a minimum hourly rate, which is adjusted periodically.

— By  Shafak Sajid, Policy analyst