Prince Edward Island minimum wage increase on April 1, 2021

Prince Edward Island’s minimum wage will increase by 15 cents to $13.00 per hour as of April 1st, 2021. The minimum overtime wage rate will continue to be 1.5 times the employee’s regular wage. 

In general, an employee subject to the Employment Standards Act must receive at least the minimum rate of hourly pay or equivalent.

Employees who do piecework (paid by the amount they produce and not by the hour) cannot be paid less for piece work than they would have earned at the minimum wage for the number of hours worked.

April 1 falls in the middle of the pay period, can I wait until the next pay period to start paying the new minimum wage?

April 1 falls in the middle of the pay period, can I wait until the next pay period to start paying the new minimum wage?

No. The new minimum wage comes into effect in April 1, any hours worked on that date and after must be made at a minimum of $13.00 per hour.

Example: The pay period is March 21 to April 3, 2021. The employee works 8 hours a day, Monday to Friday, and is paid at minimum wage.

Rate from March 21 to March 31: $12.85

Rate from April 1: $13.00

Do I have to increase the salaries of my employees who currently earn more than the minimum wage?

No. The law requires you pay at least the minimum wage to all employees; beyond that, wage increases are at your discretion.

If you have further questions, you can contact your CFIB Business Counsellor at 1-888-234-2232 or by e-mail at atlantic@cfib.ca