Minimum wage workers can expect a 50-cent increase as of April 1, 2025 (to $15.70), followed by another increase of 80 cents in October 2025 (to $16.50), representing an increase of about 8.5 per cent. These are undoubtedly welcome increases for these low-wage workers. However, this is still not enough.

These minimum wage increases hardly begin to bridge the gap between the minimum wage and the living wages calculated by CCPA Nova Scotia. The 2024 Living Wage Report indicates that this minimum wage falls significantly short of what is necessary to make ends meet across the province. The highest living wage in 2024 was in Halifax, at $28.30; even the lowest rate—$24.00 in Cape Breton—is considerably higher than the provincial minimum wage. The weighted average for the province was $26.53, with living wages in the Annapolis Valley, Northern, and Southern regions at $26.20, $24.90, and $25.20, respectively.

Those who oppose significant increases to the minimum wage argue that this work is primarily done by young people with few expenses and lots of family support. However, the reality is that teenagers are far from the only ones working in low-wage jobs. As highlighted by CCPA-NS, data from Statistics Canada showed that 35% of workers in Nova Scotia earn $20/hour or less. Furthermore, the data show that 85% of these low-wage workers were over the age of 20, 82% were not students, and the majority were in full-time, permanent positions. We also should not overlook that young people and their families face considerable costs. With Nova Scotia University tuition coming close to the  $10,000 mark this year, and student debt averaging $39,100 (2020), they also deserve a living wage. To be clear, everyone deserves to earn at least a living wage.

How did the government determine the amount for the minimum wage increases? The first increase follows the Nova Scotia Minimum Wage Order states: “Effective on and after every April 1, beginning in 2025, the current hourly minimum wage rate for employees will be adjusted by the percentage change in the projected annual Consumer Price Index for the calendar year immediately preceding the year in which the adjustment occurs, plus an additional 1%, and rounded to the nearest $0.05.” The average CPI annual increase in 2024 was 2.4 per cent across Canada plus 1 per cent is a 3.4 per cent increase by April 1st. According to the government, the second increase is to help these workers further with the cost of living. The formula should factor in real-time costs in the province more carefully. For example, rent rose 7.9 percent in Nova Scotia in 2024 compared to 2023; rent takes up the most significant portion of low-wage workers’ budgets, and for some of these workers, these increases will be swallowed already. 

Bridging the gap between the cost of living and low-wage employment requires government action on both sides of the equation. One solution is to increase the minimum wage to $20. Making life more affordable also requires substantial public investment to lower people’s out-of-pocket costs for essentials. This includes expanding access to key universal public services, like child care and health care, and increasing the amount directed to non-market affordable housing, public transportation, post-secondary education and food security.

With a provincial budget around the corner, we draw your attention to the alternative budgetary choices the government could make to build a green, diversified economy and just society. We look forward to hearing more about the new government’s plans and urge it to be transparent about them, as respecting democracy requires. 

Jenna MacNeily and Dr. Christine Saulnier

Jenna MacNeily is a graduate student at Dalhousie University, completing her Master of Social Work and Dr. Christine Saulnier is the Nova Scotia Director of the Canadian Centre for Policy Alternatives.