Small business tax and other measures soften blow of minimum wage increases

VICTORIA, May 4, 2016 /CNW/ - Restaurants Canada is disappointed the Government of B.C. has deviated from its plan announced last year to base minimum wage increases on the Consumer Price Index. 

"Naturally our members will not be pleased that minimum wage will go up by 3.8% in September of this year and again next year, as they had planned for an increase based on inflation of less than half that amount," said Mark von Schellwitz, Restaurants Canada's Vice President, Western Canada. "But we do appreciate the accompanying youth training and small business tax announcements that will help restaurant businesses."   

Restaurants Canada has been asking the government for predictability and certainty on minimum wage. While the increase is higher than expected, today's announcement will give employers time to plan for the increases during a period of economic growth. 

British Columbia's restaurant industry directly employs 172,000 people across the province, and is the top source of first-time jobs for young people. 

The increase to minimum wage will bring the general wage up to $10.85 in 2016 and $11.25 in 2017. The liquor server wage, which recognizes the significant income these employees earn from gratuities, rises by the same percentage to $9.60 in 2016 and $10.00 in 2017. 

Restaurants Canada (formerly CRFA) is a growing community of 30,000 foodservice businesses, including restaurants, bars, caterers, institutions and suppliers. Founded in 1944, we connect our members from coast to coast through services, research and advocacy for a strong and vibrant restaurant industry. Canada's restaurant industry serves 18 million customers every day, and directly employs 1.2 million Canadians.

SOURCE Restaurants Canada

MEDIA CONTACT: Mark von Schellwitz at [email protected]; 604-685-9655 or 604-809-5719