Work & Business
Minimum Wage and Employment Standards in PEI: What Changed in 2026
PEI's Employment Standards Act was rewritten in 2026: a shorter work week, faster vacation eligibility, and guaranteed rest between shifts. Here is what changed and what your paycheque should reflect.
1. Minimum Wage Is Rising Twice in 2026-27
| Effective Date | Minimum Wage |
|---|---|
| April 1, 2026 | $17.00/hour |
| October 1, 2026 | $17.30/hour |
| April 1, 2027 | $17.60/hour |
Board and lodging deductions an employer can take off your wages are also capped: up to $61.60/week for board and lodging combined, $49.50/week for board only, $27.50/week for lodging only, and $4.25 per single meal.
2. The Standard Work Week Dropped From 48 to 44 Hours
A new Employment Standards Act came into force on June 30, 2026, replacing the old one. The standard work week is now 44 hours, and every hour worked beyond that qualifies for overtime pay at 1.5 times your regular rate, unless your industry falls under a Standard Work Week Exemption Order. You and your employer can agree in writing to average your hours over 2 to 4 weeks instead of calculating overtime week by week.
3. New Protections That Didn't Exist Before
- Advance scheduling: your employer must give you your work schedule at least 1 week ahead, except for genuine emergencies or unexpected changes
- Rest between shifts: you're entitled to at least 8 hours of rest in any 24-hour period
- Split shifts: a split shift must be completed within 12 hours of when it started
- Pay statement detail: your pay statement must now clearly show holiday pay and pay for any paid leave taken
4. Vacation Entitlement Got Faster
| Years With Same Employer | Paid Vacation |
|---|---|
| Up to 5 years | 2 weeks after 12 months of continuous work |
| More than 5 years | 3 weeks (previously required 8 years) |
Part-time, seasonal, and short-term employees can choose to receive vacation pay each pay period instead of waiting for a lump vacation period. Paid holiday pay is calculated as 5% of your wages, excluding overtime, earned in the four weeks before the holiday.
5. Where to Go If Something Feels Off
The Employment Standards Branch (902-368-5550) handles complaints about pay, overtime, scheduling, and vacation entitlement. Keep your own pay stubs and written schedule confirmations; they're the first thing a complaint investigation will ask for.