In Prince Edward Island, Canada’s smallest province, the minimum wage is $16.00 per hour. There were two minimum wage increases introduced in 2024, though none have been scheduled for 2025.
As with most minimum wage increases, the two rate changes in 2024 were to account for changes in the Consumer Price Index (CPI). They were based on recommendations from the provincial Employment Standards Board.
Here’s everything you need to know about minimum wage in Prince Edward Island, including its history, how it compares to a living wage, and a look at recent and upcoming wage increases.
Key Takeaways
- Minimum wage in PEI is $16.00 per hour.
- It was raised to this rate on October 1, 2024.
- A living wage in PEI is estimated to be $22.76 per hour.
- The federal minimum wage was increased on April 1, 2025 to $17.75 per hour.
PEI minimum wage increases
Increases to the minimum wage in PEI are based on a review of the cost of living as conducted by the Prince Edward Island Employment Standards Board.
Here are the increases in 2024:
- $16.00 per hour on October 1, 2024
Here are the dates of increases that occurred in 2023:
- $14.50 per hour on January 1, 2023
- $15.00 per hour on October 1, 2023
The most recent change occurred on October 1, 2024. The rate will likely increase in 2025, but no dates or amounts have been announced.
Who gets minimum wage in PEI?
The minimum wage in PEI applies to all employees for each hour of work. There are also regulations for employer-provided board, lodging, and meals with maximum amounts employers can deduct per week or meal.
For more information, see Minimum Wage Order (Board and Lodging).
Brief history of minimum wage in PEI
To understand PEI’s minimum wage, let’s take a brief look at its early history:
- In 1960, Prince Edward Island set its first minimum wage, and for 14 years, PEI's minimum wage was different for men and women.
- On January 1, 1974, PEI issued a new minimum wage that was applicable for both men and women, making minimum wage the same for both sexes in the province. At the time, PEI minimum wage was $1.65 per hour for adults over the age of 18 years, and $1.45 per hour for those under 18 years old.
- One year later, on January 1, 1975, PEI's minimum wage increased to $2.05 per hour for those over 18 years old – an increase of 24% from the previous year.
Since that time, the PEI minimum wage has steadily risen to accommodate for increases in the cost of goods and services.
Fast forward a few decades to 2017, and PEI's minimum wage sat at $11.25 per hour. By 2020, that number had increased to $12.85 per hour, for a total increase of 14% over the course of three years.
How does the minimum wage in PEI compare to the living wage in PEI?
A living wage is defined as the wage an employee needs to make to pay for basic expenses and be active in their community.
In 2024, the living wage for people living in Charlottetown, PEI, was calculated to be $22.76 per hour. Considering the consistent inflation experiences in the province, it’s reasonable to assume that when the living wage is calculated again, this number will be even higher.
Compared to the current minimum wage rate of $16.00 per hour, the living wage in PEI is significantly higher than the minimum wage earned by workers.
Federal minimum wage increase
As of April 1, 2025, the federal minimum wage is set at $17.75. This was an increase of 2.4% over the previous rate of $17.30.
The federal minimum wage is reviewed annually. It increases based on the changes in Canada’s Consumer Price Index (CPI).
This change will increase the minimum wage for workers in federally regulated private sectors, which include:
- Banks
- Postal services
- Air and road transportation
- Telecommunications (telephone, internet, etc.)
- Radio and TV broadcasting
Employees of these sectors will earn the higher rate between the federal minimum wage and their province/territory’s minimum wage.
FAQ
What is the minimum wage in PEI?
Minimum wage in PEI is $16.00 per hour. Wages were increased to this amount on October 1, 2024. The wage will likely increase again in 2025 as a way to keep up with rising inflation and CPI.
When was the last PEI minimum wage increase?
The PEI minimum wage has increased incrementally each year since it was introduced. The last minimum wage increase was to $16 per hour on October 1, 2024, and no increase for 2025 is currently scheduled.
Does PEI have the highest minimum wage in Canada?
No, Nunavut has the highest minimum wage in Canada at $19.00 per hour – a significantly higher rate than PEI's. PEI is tied with Newfoundland and Labrador ($16.00 per hour) for the highest minimum wage rate in the Maritimes.
What is the living wage in PEI?
The living wage in Charlottetown, PEI, was calculated at $22.76 per hour in 2024, and it’s safe to assume that number has not decreased in the past year, especially with U.S. tariffs looming.
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