Anti-poverty advocates want Saskatchewan to lift its minimum wage to the highest level in the country, but some argue a large hike will hurt small businesses.

Labour Minister Don Morgan hinted earlier this week that the government will soon announce the province’s first minimum wage increase in nearly two years. The government also plans to index the minimum wage to the consumer price index.

At $10 an hour, the current minimum wage in Saskatchewan is tied for second lowest with New Brunswick, Prince Edward Island and the Northwest Territories. Ontario and Nunavut offer the highest hourly rates at $11, while Alberta’s is the lowest at $9.95.

Peter Gilmer, an advocate with the Regina Anti-Poverty Ministry, says Saskatchewan should raise its minimum wage to just over $11 an hour as a first step.

“Inflation for low-income people has risen at a higher rate than the general population, and that’s because when you look at the highest costs, you’re looking at issues of rapidly rising rents and utilities, which particularly hit lower-income families,” Gilmer said.

“We have to have a more socially adequate minimum wage before we index, or else we start indexing poverty.”

According to the Canadian Centre for Policy Alternatives, the “living wage” for a family of four in Regina is $16.46 an hour, or a combined income of $58,245. The latest statistics show 27 per cent of workers in the city earned less than that in 2012.

However, the Canadian Federation of Independent Business says it’s opposed to indexing the minimum wage to an economic indicator, as it doesn’t reflect current market conditions.

“Small business owners do have some outstanding concerns with what the government’s intent is to hike minimum wage and then annually index it,” said Marilyn Braun-Pollon, the CFIB’s vice-president for Prairie and agri-business.

“The No. 1 cost pressure right now is wages because business owners are having a tough time attracting and retaining (staff), so they’re paying competitive wages as it is.”

Braun-Pollon said the retail and hospitality sector will be the hardest hit by a minimum wage increase. The federation hopes the government will introduce a gratuity or training wage to mitigate the impact of the impending hike.