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minimum wage

Minimum wage raise may cost you more

Jun 1, 2023 | 5:18 PM

KAMLOOPS–As of today, B.C.’s minimum wage is $16.75–over a dollar more than it was yesterday.

While minimum wage workers may be excited about the raise, it could be coming at the expense of consumers and small business owners. The increase is only a $1.10 per hour, but that could mean payroll crossing the $500,000 threshold for Employers’ Health Tax (EHT).

“For a lot of businesses, a minimum wage increase – with the same number of employees, suddenly their payroll has tripped over that half a million dollar mark,” Tim Shoults, Kamloops Chamber of Commerce president said. “Which is where that EHT comes into effect and suddenly they are paying thousands more in health taxes, as well as more in wages. All of these are things people are going to see at the cash register.”

When asked what the wage increases will mean for business, a local bookstore owner said it all depends on consumers, but he’s not too worried. “Basically it means I have to pay my employees more, of course,” David Marklinger, owner of Legends Used Books said with a laugh. “That’s kind of the nature of the business, as long as my business is doing okay, I can afford to pay them more, but that depends on how business goes.”

According to the Kamloops Chamber of Commerce, the raise will primarily affect the service industry, where most of the employees make minimum or close to minimum wage, Shoults sees restaurants having to raise prices to keep up with the larger costs.