The announced minimum wage increases for 2026 do not go far enough

The Nova Scotia government has announced that employers will have to pay minimum wage workers 50 cents more per hour in 2026, with a 25-cent increase effective April 1 and another 25-cent increase in October. The government is following the legislated requirement and recommendation of the Minimum Wage Review Committee to increase the minimum wage based on the average of 2025 (January to November) Canadian Price Index (CPI) plus one per cent. This 50-cent increase represents a 2.9 per cent increase, which is based on the 1.9 per cent CPI plus one per cent. 

The announced increases are critical, but fall short of what people need, leaving them struggling to make ends meet. The base adjustment does not accurately capture the reality of rising costs for low-wage workers. Even if the formula were based on the Nova Scotia CPI, it would be slightly higher (three per cent). More importantly, the increase should consider rental costs (seven per cent) and food cost inflation (five per cent). We know that the lack of affordable housing means that shelter costs consume a significant portion of the budgets of minimum-wage workers, as well as other essentials. 

The Nova Scotia minimum wage has perennially been among the lowest in the country. The current minimum wage (increased on October 1st, 2025, to $16.50) sees Nova Scotia rank in the middle of the provinces. The increases in the minimum wage in recent years were made after a long period of neglect, during which rates had fallen behind the cost-of-living increases. 

Nova Scotia’s minimum wage rate falls very far short of the provincial living wage rate (the provincial weighted average is $27.60 per hour). This difference is more pronounced for workers in Halifax, where the living wage is $29.40 per hour–one of the highest in the country. Although there have been improvements in the minimum wage in recent years, the amount is still insufficient to ensure that employees can afford to live in the province.

With the new minimum wage taking effect in October 2026, the current gap with the provincial living wage will fall only slightly, from $11.90 to $10.60 per hour. In Halifax, the gap will go from $12.90 to $12.40. These gaps may even be larger, depending on the 2026 living wage calculations. This is a modest reduction, highlighting the need for a more comprehensive plan to close the wage gap and the cost of living.

As the living wage analysis reveals, the gap between what people need to earn and the minimum wage has almost doubled since 2018. In Nova Scotia, approximately 50 per cent of workers earn less than a living wage, with more women than men below that threshold. We also know that over 30% of Nova Scotia workers earn less than $20 an hour.

Nova Scotia’s economy is systemically and structurally based on a low-wage labour market, which is unsustainable. By lifting minimum wage earners, we begin to address these challenges, benefiting these workers primarily and also level the playing field for all employers. 

As we recommended in our recent labour standards report, the government should:

  • Significantly raise the minimum wage with a plan to reach $20 an hour and continue decreasing the living wage gap. 
  • Continue to ensure the minimum wage is adjusted annually for inflation plus one per cent to protect the floor from erosion. This adjustment should consider provincial inflationary costs, particularly for rental and food inflation. 
  • Remove exemptions and ensure no worker can be paid less than the minimum wage.

As we also underline in our living wage reports, governments can do more to address the costs of living. The minimum wage does need to be increased. Governments can also expand access and increase the amount of income support available to low-waged workers (such as through the NS Affordable Living Tax Credit or the Nova Scotia Child Benefit), as well as enhance public services, including access to $10 a day child care, prescription drug coverage, non-market affordable housing and more affordable transit options. 

Across-the-board tax cuts were never the answer for these workers, especially since a very small portion of the $500 million will actually benefit them. Higher-income individuals pay more taxes and consume more; thus, they receive a disproportionate amount of that revenue, which could have been better spent, as we outline in our upcoming Nova Scotia Alternative Budget. 

Moreover, as the Better Way Alliance of businesses has said, governments can help small businesses by, for example, improving the commercial rent process so that “business owners don’t need to choose between paying staff and paying rent.” As they also argue, “businesses depend on workers who can afford to live, raise families, and retire with dignity in Canada. When our workers do well, we can focus on fixing the real issues facing our enterprises.”   

At the end of the day, a stronger minimum wage is not only about numbers. It is about ensuring people can cover the basics without constant stress. They are healthier, more stable, and more able to participate in their communities; that stability also benefits small businesses. A fair economy is one where both workers and small businesses have the conditions they need to thrive.