WATCH: Is the latest minimum wage bump enough?

Wages for the lowest paid workers in British Columbia will be bumped up by 45 cents an hour as of June 1. However, the pay is still below the true cost of living according to one think tank.

The minimum wage will increase to $15.65 an hour, from the current rate of $15.20, with the government saying that makes the pay the highest among the provinces.

The minimum wage still falls well short of the so-called living wage seen in a number of communities. In Kelowna for example, that rate is $18.49 an hour and it is $20.52 in the Lower Mainland according to the Canadian Centre for Policy Alternatives.

Mondays’ announcement of the increase in the province's minimum wage is the first to be linked to B.C.'s annual inflation rate, which was 2.8 per cent last year, the highest since 1993. The move follows a recommendation made by the independent Fair Wages Commission which consulted with businesses and other stakeholders.

Speaking at a media briefing, Minister of Labour Harry Bains said the decision to use the provincial rate of inflation rather than the national rate was made to better reflect the needs of B.C. workers.

He says the increase is expected to attract more workers to the province, while providing certainty of costs for businesses.

The alternate minimum wages will also rise by 2.8 per cent on June 1 for daily or monthly rates for live-in camp leaders, live-in home support and resident caretaker workers.

“As well the minimum agriculture piece rates for workers who hand harvest certain crops will increase by 2.8 per cent on Jan. 1, 2023. The date for increases in piece rates was selected so it doesn’t interfere with the harvest season,” Bains explained.

The province said in 2021, six per cent of employees in B.C. (136,300) earned minimum wage or less, and also in 2021, 52 per cent of employees earning minimum wage or less were over the age of 25 and 58 per cent were women.

Under the NDP government, B.C.’s minimum wage has gone from $11.35 in 2017 to 15.20 as of last June.

Bains said the wage hike particularly helps the lowest paid and most vulnerable workers.

“Many of whom have worked tirelessly during the pandemic and kept our grocery stores open and kept our supply chain moving,” he remarked.

Bains was asked about the impact the raise will have on the bottom line to small businesses.

“We certainly are aware that the businesses are struggling during the pandemic, and that is why the B.C. government provided the most support to the businesses on a per capita basis than any other jurisdiction in Canada,” Bains stated.

The minister said the increase does provide certainty which businesses had asked for in consultations.

“Having a gradual, predictable increase provides them with certainty so that they can plan,” the minister added.