Universidad Autónoma de Nuevo León 

Facultad de Contaduría Pública y Administración 

Licenciado en Negocios Internacionales 

Evidence 3 What does determine the minimum wage?

Enrique de Jesús García Guardado

Name: Fernanda Yaretzy Treviño Leal 1744066

Group: 8Bi

Cd. Universitaria, San Nicolás, October 8th 2020

 Minimum wage in Canada

The minimum salary or SMI is the minimum remuneration amount or the value of
the minimum salary that a worker receives for the legal working day, regardless of
the type of contract they have.
The minimum salary for 2019 in Canada has been set at € 1,479.5 per month, that
is, € 17,754 per year, taking into account that 12 annual payments are considered,
which is the usual division of the annual salary in most of the countries.
If we look at the minimum wage in Canadian dollars, which is the official currency
in Canada, we can see that this year it was 2,308.8 Canadian dollars and
therefore, the minimum salary has risen 79.7 Canadian dollars per month
compared to the previous salary, a 3.6%. This increase is greater than that of the
2018 Consumer Prices Index, which is 2%, therefore workers have gained
purchasing power in the last year.
In many countries, the minimum wage has the same value throughout the national
territory; however, in Canada things are a little different.
First, the minimum wage in Canada is not monthly, but per hour and on the other
hand, this hourly value may vary according to the region.
Currently the lowest salary, for example, is CAD $ 10.85, and the highest CAD $
14.00, with a difference of up to almost three dollars per hour depending on the
province. That is, if you are employed in a full-time job (40 hours per week),
earning the minimum wage in Canada, at the end of the month the difference can
be up to CAD $ 368!
With this table, you can see what the minimum wage depending on the province is
 Salario Salario anual (40 h/semana,
Provincia/Territorio por hora 50 semanas laboradas/año)

Alberta $15.00 $30,000.00

Columbia Británica $14.60 $29,200.00

Isla del Príncipe

Eduardo $12.85 $25,700.00

Manitoba $11.35 $22,700.00

Newfoundland y
Labrador $11.65 $23,300.00

Nuevo Brunswick $11.70 $23,400.00

Nueva Escocia $12.55 $25,100.00

Nunavut $13.00 $26,000.00

Ontario $14.00 $28,000.00

Québec $13.10 $26,200.00

Saskatchewan $11.06 $22,120.00

Territorios del
Noroeste $13.46 $26,920.00

Yukon $13.71 $27,420.00

The applicable minimum wage rate with respect to employees under federal
jurisdiction is the general minimum rate for adults in the province or territory where
the employee is usually employed, the rate increases based on the average
percentage change in the Consumer Price Index and the percentage change in
Saskatchewan's average hourly wage from the prior year. Minimum wage
increases are subject to Cabinet approval.
The Consumer Price Index (CPI) represents changes in prices as experienced by
Canadian consumers. It measures price change by comparing, through time, the
cost of a fixed basket of goods and services.
The goods and services in the CPI basket are divided into 8 major components:
Food; Shelter; Household operations, furnishings and equipment; Clothing and
footwear; Transportation; Health and personal care; Recreation, education and
reading, and Alcoholic beverages, tobacco products and recreational cannabis. A
higher than expected reading should be taken as positive/bullish for the CAD, while
a lower than expected reading should be taken as negative/bearish for the CAD.

The Consumer Price Index for September will be released on October 21.
Statistics Canada continues to monitor the impacts of the novel coronavirus (also
known as COVID-19) on Canada’s Consumer Price Index (CPI).

Goods and services in the

Consumer Price Index (CPI),
which were not available to
consumers in August due to
COVID-19 restrictions,
received special treatments,
effectively removing their
impact on the monthly CPI.
The following sub-indexes
were imputed from the
monthly change in the All-
items index: travel tours,
components of spectator
entertainment, and
recreational services.
 References

Alejandro Pereyra. (07/03/2020). Salarios y Costos Canadá. 08/10/2020, de Vivir

Canadá Sitio web: https://vivircanada.com/salarios-y-costo-de-vida-en-canada/

Expo Canada. (Noviembre 15, 2017). ¿Cuál es el salario mínimo en cada provincia
de Canadá?. 08/10/2020, de Vente a Canadá Sitio web:
https://www.venteacanada.com/cual-es-salario-minimo-en-cada-provincia-de-
canada/