Canada to Increase Federal Minimum Wage Soon

Canada’s Federal Minimum Wage to Increase Soon

The federal minimum wage in Canada is set to rise in less than three months, with adjustments made annually on April 1 to align with inflation.

Last year, the federal hourly minimum wage was increased from $16.65 to $17.30 on this same date. This wage applies to employees and interns in federally regulated private sectors, including industries such as banking, telecommunications, and interprovincial transportation (air, marine, rail, and road), according to Canadian law firm Samfiru Tumarkin LLP.

The adjustments are based on Canada’s Consumer Price Index (CPI) for the previous calendar year. December 2024’s CPI data, which will finalize the 2025 increase, is set to be released on January 21. Employment and Social Development Canada (ESDC) has confirmed that the new federal minimum wage will be determined shortly thereafter and published on the government’s labour program website ahead of the April 1 implementation.

While official numbers are pending, some forecasts have already emerged. Immigration consultancy ImmigCanada predicts the federal minimum wage could rise to approximately $17.70 per hour, though this estimate is not yet confirmed.

Provincial vs. Federal Minimum Wage

Many provinces also update their minimum wages in April, while others make adjustments in October or less frequently. If a province’s minimum wage exceeds the federal rate, federally regulated employers in that region must adhere to the higher provincial amount, as clarified by Samfiru Tumarkin LLP.

For more information on wages or labour policies, visit the government’s labour program website or contact the Labour Program at 1-800-641-4049.

Living Wage Concerns

Despite periodic increases, Canada’s minimum wages remain significantly below what is considered a living wage in most regions.