PEI Minimum Wage 2021

PEI Minimum Wage 2021

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated November 1, 2021

In Prince Edward Island, under the law, employers must pay their workers a minimum pay rate. Minimum wages are usually set every year to reflect the cost of living and are meant to ensure that employees are able to cover the basic costs of living, including food and shelter.

Let’s go into more detail about the minimum wage in PEI this year, and what exceptions may exist. 

Minimum Wage PEI 2021

As of April 1, 2021, the minimum wage for all employees in PEI is $13 per hour. That’s an increase of $0.15 from April 2020, when the minimum wage was $12.85 per hour. 

The Minimum Wage Order establishes wage rates in PEI, which is the amount an employer must pay an employee for every hour of work. The order also establishes standards of employment for any costs associated with lodging and meals, where applicable. 

Check out what documents you need to find a job in Canada.

Minimum Wage Over The Years

The following table displays the minimum wage rate in PEI over the past 5 years:

YearMinimum Wage Rate

Minimum Wage Exceptions PEI

There are certain exemptions to minimum wage requirements in PEI. For instance, some employers pay their workers by how much they produce, rather than hourly, which is known as ‘piecework’. That said, employers are not allowed to pay their workers less for piecework than what their employees would have earned at the minimum wage for the number of hours worked.

Find out the difference between working as an employee and working as a contractor.

Non-Allowable Wage Deductions 

Employers may withhold or deduct all or part of a worker’s pay if the worker authorizes it in writing. However, there are exceptions. Employers cannot make such deductions in the following circumstances:

  • Faulty workmanship or damage done to the employer’s property 
  • Uniform and footwear required by the employer and unique to the employer’s business
  • Cash shortages to be covered 

Allowable Wage Deductions

Employers are allowed to make certain deductions to employee wages, including the following: 

  • As required or permitted by law, such as Employment Insurance (EI) or income tax
  • As agreed upon by the employee in writing 
  • As required by order of the court 
  • After a previous pay advance made to the employee
  • Through a group benefits plan that the worker participates in
  • Through a contribution toward a savings plan as requested by the employee
  • As authorized by the Minimum Wage Order

Under the Employment Standards Act, eligible employees get the following paid holidays off:

  • New Year’s Day
  • Islander Day (3rd Monday in February)
  • Good Friday
  • Canada Day
  • Labour Day
  • Remembrance Day
  • Christmas Day

In order to qualify for these paid holidays, employees must meet the following criteria:

  • Be employed with the same employer for at least 30 calendar days before the holiday 
  • Earned pay on a minimum of 15 out of the 30 calendar days prior to the holiday 
  • Worked their last scheduled shift prior to the holiday and the first scheduled shift after the holiday

If an employee is told by their employer not to come into work on their last scheduled workday right before the holiday, or the next scheduled workday following the holiday, the employee will still be entitled to receive holiday pay.

In the case where an employee works on a holiday and who is qualified to be paid to be off, that employee is eligible to receive a regular full day’s pay and 1.5 times the employee’s regular wage for the number of hours worked on that holiday. Or, the regular wage rate for the number of hours worked on that day and another day off with the employee’s regular day of pay before their next paid vacation.

Overtime Wages In PEI 

Most jobs in PEI come with a standard workweek of 48 hours. Any hours worked over this 48-hour threshold within 1 week are considered overtime hours and must be paid as such. In PEI, overtime hours are paid at 1.5 times the regular pay rate. 

Employees may opt to save their overtime hours to be taken at a later time as paid time off if the employer agrees and the request for compensation is made in writing. The paid time off will also need to be taken within 3 months of when the overtime was worked. Employers must keep records of any overtime worked and used by employees.

Are you a foreign worker? Learn about your rights as an employee.

FAQs About Minimum Wage in PEI

Do I get paid for my lunch breaks in PEI? 

Employees are entitled to a half-hour unpaid break for every 5 hours worked consecutively and cannot be denied without justification. Under certain circumstances, employers must pay for the half-hour break where employees do not get the full entitled break at one time.

How much vacation pay can I get in a year in PEI? 

Under the Employment Standards Act, employees are entitled to paid vacation. For employees who have worked for the same employer for less than 8 years:
  • 2 weeks vacation after each 12-month period within the following 4 months
  • At least 4% vacation pay paid for by the employer at least 1 day prior to the start of the vacation
For employees who have worked for the same employer for at least 8 years or more:
  • 3 weeks vacation after each 12-month period within the following 4 months
  • At least 4% vacation pay paid for by the employer at least 1 day prior to the start of the vacation

Can my employer take my tips? 

Employers cannot require an employee who earned tips and gratuities to share them. However, employers may have a policy in place in which tips and gratuities may be pooled to benefit all employees. In this case, the employee must be advised in writing when they are first hired so they are aware of this policy before they start working.

Final Thoughts

Minimum wages are set to ensure that employers don’t pay workers less than would be needed to cover the basic costs of living. In PEI, that number is usually set every April and typically reflects the increase in costs of housing, food, and other necessary expenses. As an employee, you’re entitled to these minimum pay rates, and your employer must comply according to provincial law in PEI.

Rating of 5/5 based on 1 vote.

Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same. She's used a variety of financial tools over the years and is currently growing her money with Wealthsimple, while stashing some capital in a liquid high-interest savings account so that she always has a financial cushion to fall back on. She's also been avidly using her Aeroplan TD credit card to collect as many Aeroplan points as possible to put towards her travels!

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Make Smarter Borrowing Decisions

Whether you have good credit or poor credit, building financial awareness is the best way to save. Find tips, guides and tools to make better financial decisions.

Save With Loans Canada

Special Offers

Earn An Extra 15% Cash Back

Earn An Extra 15% Cash Back

Apply for a Tangerine credit card by December 31, 2021, and earn an extra 15% back (up to $150).*

View Offer
Build Credit With Refresh Financial

Build Credit With Refresh Financial

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $7/Month

Build Credit For $7/Month

With KOHO’s prepaid VISA card you can build a better credit score for just $7/month.

View Offer
Industry Spotlight

What's happening with Canada's credit industry?

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer — Helping Consumers Achieve Financial Freedom by Connecting Canadians Looking For Financing With Canadians Looking to Invest

goPeer is Canada's first consumer peer to peer lending platform and connects creditworthy Canadians looking for a loan with everyday Canadians looking...

Read Post
Find The Best Rate
In Your Region
Best Personal Loan Provider by Greedy Rates

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Keep Track Of Your Credit Score

Subscribe with Credit Verify to monitor your credit rating and get your free credit score.