FREDERICTON — The Holt government has launched a review of New Brunswick’s minimum-wage law, inviting public comment on whether the current method of annual increases—tied to the consumer price index—remains the best approach for workers and employers across the province.
What’s being reviewed
The province’s minimum wage stands at $15.90 an hour, a rate that is currently the third lowest among Canadian provinces. Since 2019, annual adjustments to the minimum wage have been linked to changes in the consumer price index (CPI), a commonly used measure of inflation.
Labour Minister Alyson Townsend described the CPI link as “simple and easy to apply,” and said it provided predictability for workers and businesses.
“The cost of living change was done as a holding pattern, so you didn’t have to do an in-depth study every year,”
The minister added that a more detailed review must be done periodically to ensure the policy remains appropriate, and that the outcome of the current consultations could mean moving away from strict CPI indexing.
Why the review matters
Linking minimum-wage increases to inflation removed yearly political debate over wage hikes and allowed governments to apply an automatic formula. Before indexing was adopted, minimum-wage adjustments in New Brunswick were a frequent campaign issue, with governments often under pressure to raise the floor for low-wage workers.
A change in the formula could affect:
- Workers on hourly, part-time and entry-level positions who rely on the minimum wage;
- Small and medium-sized employers that plan labour costs annually;
- Provincial competitiveness and social policy objectives tied to poverty reduction and cost-of-living pressures.
Options and what’s at stake
Townsend indicated that adopting an alternative to CPI indexing is “quite likely,” but tied that possibility to the consultation findings. She stressed the value of predictability—“People don’t like surprises on things like that”—while acknowledging periodic in-depth reviews are necessary to ensure alignment with the real cost of living.
Stakeholders who may weigh in include labour groups, business associations, municipalities and individual residents. Each brings differing priorities: labour advocates typically push for more rapid increases to lift incomes, while some employers warn that higher wages can raise operating costs and affect hiring.
| Measure | Current value |
|---|---|
| Minimum wage | $15.90/hour |
| Provincial ranking (by rate) | Third lowest in Canada |
| Indexing mechanism | Annual CPI adjustments (since 2019) |
Context from recent history
Before the CPI link was adopted, minimum-wage increases were subject to political negotiation and electoral promises. The previous Liberal government, for example, had committed in 2014 to a staged increase but faced delays and coordination issues with neighbouring provinces.
Automatic indexing was introduced as a way to depoliticize annual adjustments and tie increases to an economic indicator. Critics of strict inflation indexing argue it may not fully reflect changes in local living costs or broader labour-market conditions, while proponents say it ensures transparency and steadiness.
How New Brunswickers can participate
The provincial government is soliciting input as part of the review. Details about submission deadlines and formats were not included in briefing material released by the minister but are expected to be published on the government website and through departmental communications.
Officials say they will consider submissions before deciding whether to retain CPI-indexed annual increases, adopt a different formula, or pursue periodic, in-depth reviews combined with targeted adjustments.
Implications for the province
A decision to change the minimum-wage formula could have ripple effects on household incomes, employment costs and public policy in New Brunswick. For workers on the margin of poverty, even modest hourly changes can matter; for employers, predictable planning and labour cost management are central concerns.
The consultation offers an opportunity for communities across the province—workers, employers and advocates in both official languages—to make their perspectives heard as the Holt government weighs whether the current “holding pattern” should remain or be replaced with a different approach.
Follow-up announcements on the consultation process and timelines are expected from the Department of Post-Secondary Education, Training and Labour in the coming weeks.
