Alberta’s Wage Debate: Why an Increase Right Now Could Hurt Small Business

Alberta’s minimum wage has been set at $15 per hour since 2018. When Saskatchewan raised its rate to $15.35 in October 2025, Alberta became the province with the lowest minimum wage in Canada. At first glance, that might seem like a reason to act—but raising the minimum wage right now would create more problems than it solves. 

For small businesses, the stakes are high. Nearly half of Alberta’s small firms say they could not afford to pay a “living wage” of $20 per hour, which is what the provincial NDP opposition party is pushing for. Many simply don’t have the revenue to absorb higher payroll costs. CFIB’s November Business Barometer® shows that 21% of Alberta businesses cite a shortage of working capital as a barrier to growth, while nearly two-thirds (62%) already identify wage costs as their biggest expense pressure. Adding another increase now would push many to the brink. 

The truth is, minimum wage hikes are a blunt instrument for addressing affordability. They don’t tackle the drivers of rising costs:taxes, regulatory burdens, utilities, and housing. Without addressing these factors, higher wages alone won’t make life more affordable, but they will make it harder for small businesses to keep their doors open. Any future adjustments must be affordable, predictable, and announced well in advance so businesses can plan. 

It’s also important to understand who earns minimum wage. Most minimum wage earners in Alberta are young, part-time workers in short-term roles. Only a small fraction are single parents supporting families. Across-the-board increases often miss those who need help most, while creating unintended consequences for employers and job seekers. 

Instead of shifting the burden onto small businesses, government should lead on affordability. Smarter solutions include reducing payroll and business taxes, linking minimum wage changes to economic conditions, expanding access to affordable housing and childcare, and investing in skills training for low-income workers. These measures target the root causes of cost pressures without jeopardizing jobs. 

Small businesses want to pay fair wages—but they also need policies that reflect economic realities. Raising Alberta’s minimum wage right now isn’t the answer. Tackling affordability head-on is. Looking for better policies, stronger support systems, and reliable resources for your small business? Join CFIB today and unlock these benefits, plus so much more!