Manitoba Finance is advising Manitobans the provincial minimum wage will increase by five cents to $11.95 as of Oct. 1.
By law, Manitoba’s minimum wage is tied to the Consumer Price Index. This adjustment is based on Manitoba’s 2020 inflation rate of 0.5 per cent, rounding up to the nearest five cents. Indexing Manitoba’s minimum wage to inflation provides predictability for businesses in terms of wage costs and ensures the purchasing power of the minimum wage is maintained on an ongoing basis.
Budget 2021 continues to make life affordable for Manitobans through the $2,020 Tax Rollback Guarantee, such as the new education property tax rebate that will return nearly $250 million to the owners of approximately 658,000 properties in Manitoba. The 2021-22 budget also removes the retail sales tax on personal services like haircuts and salon services, and reduces vehicle registration fees another 10 per cent.
Manitobans continue to benefit from the indexation of the Basic Personal Amount and the provincial income tax brackets to the rate of inflation. This has saved Manitobans more than $145 million since indexation began in 2017 and removed an estimated 12,500 Manitobans from the tax rolls including an additional 1,500 individuals who will not have to pay provincial income tax for the 2021 tax year. In addition, Manitobans and businesses continue to benefit from the reduced retail sales tax rate of seven per cent, providing another $325 million in annual tax savings.
