Here is the actual cost of an employee’s salary paid at the minimum wage in 2018 vs 2010 (source: Emploi-Québec).
- From May 1, 2010 to May 1, 2018, the all-inclusive hourly minimum wage went from $ 11.02 to $ 13.84, an increase of 25.6%;
- This means that labor costs have increased by an average of 2.95% per year, while Quebec is growing at an average rate of 1.6% per year;
- For the same period, according to the Institut de la Statistique du Québec, inflation would have increased by only 1.46% per year on average since 2010;
- Thus: the growth rate of labor costs in Quebec since 2010 is on average 85% higher than inflation and that, year after year, an increase that convenience stores have no choice but to absorb in reductions of expenditure or increases in income.
Among the payroll taxes that increased the most are:
- The minimum wage, culprit # 1 of the increases: it rose from $ 9.50 to $ 12.00, or 26.3% increase, or 2.9% per year (1.6% the rate of inflation);
- The contribution rate to the Québec Pension Plan: increase of 37.9%;
- Even though the contribution rate to the Employment Insurance went down, the weekly contribution increased by 26.8%.