Increase in the minimum wage: more pressure for SMEs

Rise in the minimum wage: more pressure for SMEs

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In Quebec, the increase in the minimum wage to $14.25 as of Sunday is causing concern within the Canadian Federation of Independent Business (CFIB).

CFIB indicates that this 5.56% increase in the minimum wage will add an additional $237.1 million to businesses.

The federation notes that this increase comes in a context of “the fragility of SMEs, hit by rising costs”. 60% of SMEs say that “cost increases are having a significant negative impact on their business,” according to CFIB.

“This minimum wage increase comes on top of other increases our businesses are experiencing. small businesses since the beginning of the year,” said François Vincent, vice-president for Quebec at the CFIB, in a press release.

The CFIB believes that the government should help small businesses. Reducing the overall tax burden (79%) and lowering payroll taxes (73%) are among the best ways to support them during a minimum wage hike.

The pandemic has left a average debt of $108,000 per Quebec SME, according to the organization.

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