Short answer: In Prince Edward Island, the minimum wage is $17.30 an hour from 1 October 2026. There is no lower wage for tipped staff: tips come on top of the full minimum wage. Yes.
Minimum wage and tips in Prince Edward Island
| Prince Edward Island | |
|---|---|
| Minimum wage | $17.30 an hour |
| In force since | 1 October 2026 |
| Lower wage for tipped staff | No |
Up from 17.00. A second step to 17.60 is set for 1 April 2027.
No lower wage for tipped staff. Tips are not wages.
Upcoming changes
Announced by the province in April 2026: 17.30 on 1 October 2026, then 17.60 on 1 April 2027.
Who owns the tips
Yes. Tips and gratuities are the property of the employee they are given to or for, and an employer cannot withhold them or treat them as wages unless you both agree they are extra wages (section 26). Tips based on the employer's billings, such as banquets, must be paid within 60 days of the service.
Tip pools
An employer may pool tips or gratuities for some or all employees, but only under a written policy. The employer must give you the pooling policy in writing when you are hired (or when it starts) and post a copy at the workplace. The employer cannot make you share a tip with the employer.
Can card fees come out of tips?
No. An employer cannot pass on its administrative costs, including credit card or debit card fees, to an employee (Employment Standards Act, section 26(7)).
Service charges
Yes. A surcharge or other charge imposed on a customer instead of a tip is covered by the same rules as tips, and the employer must pay it to you by the last day of your next pay period (section 26(4) and (5)).
Income tax on tips in Prince Edward Island
Tips are taxable income. The CRA says you must report all tips: direct tips go on your return and controlled tips (paid through your employer) should already be on your T4. We found no exemption or deduction for tips in federal or PEI tax rules.
Other rules
- A new Employment Standards Act took effect on 30 June 2026.
The agency in charge is the PEI Employment Standards Branch (Workforce and Advanced Learning).
Sharing tips fairly
To share a pool by hours or points, use the tip split calculator. For what a server owes support staff, use the tip-out calculator. Customs for visitors are in tipping in Canada.
Sources
- Employment Standards Act, E-6.3 (office consolidation current to 30 June 2026)
- Individuals: Track and report your tips and gratuities
Checked in October 2026 against the sources above. Wages and rules change; check with the agency in charge before relying on a figure. This is general information, not legal advice.
Common questions
What is the minimum wage in Prince Edward Island?
$17.30 an hour, from 1 October 2026.
Is there a lower wage for tipped workers in Prince Edward Island?
No. Tipped workers get the full minimum wage, and tips come on top.
Can my employer keep my tips in Prince Edward Island?
Yes. Tips and gratuities are the property of the employee they are given to or for, and an employer cannot withhold them or treat them as wages unless you both agree they are extra wages (section 26). Tips based on the employer's billings, such as banquets, must be paid within 60 days of the service.
Can my employer take card fees out of my tips in Prince Edward Island?
No. An employer cannot pass on its administrative costs, including credit card or debit card fees, to an employee (Employment Standards Act, section 26(7)).
Are tip pools allowed in Prince Edward Island?
An employer may pool tips or gratuities for some or all employees, but only under a written policy. The employer must give you the pooling policy in writing when you are hired (or when it starts) and post a copy at the workplace. The employer cannot make you share a tip with the employer.
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