Canada has confirmed that the federal minimum wage will increase to $18.15 per hour on April 1, 2026, according to Employment and Social Development Canada.
This is a 40-cent increase from the current $17.75 wage, or about a 2.3% rise. Since the federal minimum wage was introduced in 2021, it has gone up by 21% in total.
The new rate applies to workers in federally regulated industries, such as banking, telecommunications, airlines, and interprovincial transportation. These workers should see the higher pay in their first paycheque in April.
The wage increase is based on inflation. Each year, the federal minimum wage is adjusted using the Consumer Price Index (CPI), which tracks the cost of living. The final amount is rounded up to the nearest five cents, which is why the new rate is $18.15.
For a full-time worker, this increase means about $832 more per year before taxes.
Even with the increase, the federal minimum wage is still lower than the “living wage” in most major Canadian cities, meaning many workers may still struggle to cover basic expenses.
If a province or territory has a higher minimum wage, employers must pay that higher amount instead. Right now, only Nunavut—and likely Yukon soon—have rates above the new federal wage.
Overall, the increase gives workers more stability, as the wage now rises automatically each year based on inflation.
