The increase will be phased in over two stages. The first stage will begin on May 1, 2002 with a 35 cent raise to $6.35 an hour. Stage two will start on November 1, 2002 employees will be paid an additional 30 cents bringing the wage up to $6.65 an hour. It is estimated that close to five per cent of the non-agricultural labour force makes minimum wage.

"Minimum wage and low-income earners usually spend all their income in their home communities. A modest increase like this one will contribute to local economies by boosting retail sales and personal consumption," said Labour Minister Deb Higgins.

The changes were part of the recommendations made by the Minimum Wage Board. The Board is an independent agency that consults with stakeholders on issues related to the minimum wage and then advises the government.

"This increase balances the needs of minimum wage earners with the need for our province to be economically competitive," Higgins said. "Increasing the wage will help the people in our workforce who need it most."

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