Minimum wage increase: how to prepare for it without compromising profitability

Since May 1, 2024, the minimum wage in Quebec has increased to $15.75 per hour. For some businesses, this increase represents a minor adjustment. For others, particularly SMEs in retail, restaurants, and customer service, it raises crucial questions: How can this increase be absorbed without jeopardizing margins? How can we remain competitive without reducing quality or workforce? Here are some concrete ways to adapt intelligently to this new reality.

1. Audit your payroll

First and foremost, you need to have a clear understanding of the real impact. Which employees will be affected? What is the additional annual cost? Some companies overestimate or underestimate the increase due to a lack of precise calculations.

Use a simple table to project your payroll expenses before and after May 1st, taking into account social security contributions.

2. Reassess your job structure

The minimum wage increase requires rethinking certain roles. Are all existing positions optimized? Can certain functions be merged, certain tasks automated, or processes simplified?

This is also a good time to review job descriptions and clarify responsibilities.

3. Use hiring subsidies

Several programs exist to temporarily reduce the cost of hiring a new employee. For example:

Wage subsidies for recent graduates or newcomers
Job reintegration programs
Tax credit for company internships

Vision PME supports its members in identifying and applying for this often underutilized assistance.

4. Invest in internal training

A better-trained employee is often more efficient, more versatile, and more motivated. Offering targeted training (often subsidized) can enable your employees to do more, better – and therefore make every euro paid in salary more profitable.

It’s also a way to build loyalty and reduce turnover, which indirectly reduces costs.

5. Review your prices and offerings intelligently

If your costs increase, your prices sometimes have to follow. But it’s not about increasing everything without a strategy. Analyze your most profitable products or services, those with low margins, and those that deserve to be adjusted or eliminated.

You can also increase certain offerings to justify a higher price (e.g., speed, quality, customization).

6. Automate what can be automated

Automation isn’t just for large companies. Simple tools save time on appointment scheduling, invoicing, client management, and more.

Every hour saved can be reinvested in higher-value tasks.
Conclusion
The increase in the minimum wage is a reality you have to deal with. But it can also become a catalyst to optimize your operations, strengthen your offering, and rethink your business model.
At Vision PME, we help small businesses remain agile, even during times of adjustment. With grants, training, and HR strategies, we’ll help you turn this increase into a sustainable opportunity.

Make an appointment with an advisor to assess your options.