The minimum wage will increase by 50 cents next Wednesday, going to $15.75/hour, which will make a positive difference in the wallets of many workers. The question nevertheless arises: is this enough to make ends meet in 2024?
Citizens interviewed by TVA News agree, living on $15.75/hour does not seem easy.
“It must be difficult in any case,” says one woman.
“With the price of rent, then all that…” says a man.
“I know that life is more and more expensive, it’s more and more difficult, and yes, people really have to struggle when there is a small salary coming in, clearly,” says a citizen.
According to several experts consulted by TVA Newsit is particularly difficult to align your budget with your expenses when you are on minimum wage.
“There is naturally less room for maneuver when you are on minimum wage. The desire part becomes less important… leisure activities, restaurants, outings,” explains financial planner Bruno Therrien.
Fortunately, the minimum wage has seen a significant increase in recent years.
In 2019, it stood at $12/hour. Taking into account the next increase, which will bring the minimum wage to $15.75/hour, this represents an increase of 31% in five years.
An hourly rate of $15.75 multiplied by 40 hours equals a gross amount of $630, or $434.50 after taxes. The annual salary thus amounts to $32,760 gross, or $22,593 after taxes.
To make ends meet, many employees choose to cut back on grocery shopping.
According to the most recent report on food prices in Canada, annual food expenses for a single person will be more than $3,000, and more than $16,000 for a family of four.
“We know that consumers, when income is tighter, will consume less fruit and vegetables. Often, what we also observe is more pizza, more pogos and other foods which are generally very inexpensive, but which have lower nutritional values than fresh foods,” explains the professor of health sciences. consumption at Laval Maryse Côté-Hamel University.
