If we asked you how much the minimum wage is right now in British Columbia (BC), what would you say?
Would you guess it’s still around $12 an hour? Or would you assume everyone’s making at least $20 these days?
We recently posed this question to a number of MyHR customers — many of whom don’t employ minimum wage workers — and we were surprised by the range of answers.
Minimum wage isn’t just a number — it’s a reflection of provincial policy decisions, economic pressures, and broader workforce trends. You are also legally required to pay all your workers at least minimum wage. And this June, that number is changing again.
Mark your calendars: BC minimum wage increase, 1 June 2025
Starting 1 June 2025, BC’s minimum wage will increase from $17.40 to $17.85 per hour, a 2.6% bump to align with inflation.
It might not sound like a huge jump, but it’s part of a larger trend that’s seen consistent movement over the last five years.Here’s how BC’s minimum wage has changed recently:
- 2021: $15.20
- 2022: $15.65
- 2023: $16.75
- 2024: $17.40
- 2025: $17.85
Employers must pay most employees the hourly minimum wage, regardless of whether their compensation is an hourly rate, salary, commission or on an incentive basis. If an employee's wage is below minimum wage for the hours they worked, you must top up their payment so that it's equal to minimum wage.
Some employees in specific industries have different minimum wages, e.g. live-in home support workers get paid a daily rate for each day (or part day) they work.
The Government of British Columbia website has more information on different minimum wages.
Why does the minimum wage increase over time?
The BC government has committed to tying minimum wage increases to inflation. This means workers aren't left behind as the cost of groceries, rent, and other necessities goes up. It’s about stability — for workers and for businesses trying to plan ahead.
This also means minimum wage increases aren’t random or politically timed — they’re more predictable, data-driven, and less likely to play catch-up after long periods of stagnation.
What about the “living wage”?
Heard that term “living wage” thrown around and wondered what it really means?
A living wage is the hourly amount a worker needs to earn to cover basic expenses like rent, food, transportation, childcare, and more. It’s based on the actual cost of living in a specific community — so it varies across regions.
In Metro Vancouver, for example, the current living wage is $27.05 an hour. That’s nearly $10 more than the new minimum wage. So, while minimum wage increases help, many workers are still making less than what’s needed to truly make ends meet.
Do tips count toward minimum wage in BC?
In BC, there’s no separate tipped wage like there is in some other provinces or in the US. That means a server, bartender, or anyone else earning tips must still be paid at least $17.85 per hour by their employer.
Tips are great, but they’re not a substitute for fair pay.
What’s happening across the rest of Canada?
BC isn’t alone in raising its minimum wage:
- Federal minimum wage (for federally regulated industries): went up to $17.75/hour in April 2025.
- Nunavut: leads the country at $19/hour.
- Other provinces, including Nova Scotia, Newfoundland and Labrador, PEI, and Yukon, are planning to increase their minimum wage this year as well.
So yes, this is part of a broader national trend.
Wage compression: what you should know
With every minimum wage increase comes a ripple effect. One of the biggest challenges for employers is wage compression — when the gap between entry-level workers and more experienced staff (like supervisors) gets uncomfortably narrow.
That compression can leave team leaders or long-standing employees wondering why they’re earning just a bit more than the person they’re training. And that can lead to disengagement or turnover if not addressed.
So what can you do?
- Tie raises to performance: Reward excellence, not just tenure.
- Reassess duties and roles: If someone’s taken on more responsibility, recognize it with pay.
- Communicate transparently: Let employees know how compensation decisions are made and that their contributions are being noticed.
Compensation is important — but it’s not everything
Pay matters. But how people feel about their pay is just as important.
When people work for a company that values their contributions, creates a positive work environment, and lets them do work they enjoy and are good at — that’s where real satisfaction happens.
Compensation is a big part of the puzzle, but culture, leadership, and connection matter too.
If employees feel respected, supported, and heard, a fair wage feels even more fair. And if they don’t? Even above market pay won’t stop them from looking elsewhere.
Final thoughts
Minimum wage increases are a necessary step toward fairness and economic resilience. But they also bring challenges and opportunities for employers.
Now is a great time to review your pay practices, revisit your team structure, and think about the bigger picture: not just what you pay, but how your people feel about working for you.
Let’s keep the conversation going.
If you need any help calculating minimum wage for your employees, or want assistance with remuneration, pay structures, or your staff retention strategies, please get in touch with the experts at MyHR.
