Small business tax softens blow of B.C. minimum wage increases: Restaurants Canada

Victoria – Restaurants Canada is disappointed the B.C. government has deviated from its plan announced last year to base minimum wage increases on the Consumer Price Index. 

“Naturally our members will not be pleased that minimum wage will go up by 3.8% in September of this year and again next year, as they had planned for an increase based on inflation of less than half that amount,” said Mark von Schellwitz, Restaurants Canada’s vice-president, Western Canada, in a news release. “But we do appreciate the accompanying youth training and small business tax announcements that will help restaurant businesses.

Restaurants Canada has been asking the government for predictability and certainty on minimum wage. While the increase is higher than expected, the recent announcement will give employers time to plan for the increases during a period of economic growth.  

British Columbia’s restaurant industry directly employs 172,000 people across the province and is the top source of first-time jobs for young people, Restaurants Canada said.

The increase to minimum wage will bring the general wage up to $10.85 in 2016 and $11.25 in 2017. The liquor server wage, which recognizes the significant income these employees earn from gratuities, rises by the same percentage to $9.60 in 2016 and $10.00 in 2017.