Workers across Canada will see an increase in their paychecks as both federal and provincial minimum wages rise starting today, April 1, 2025. The federal minimum wage has been raised from $17.30 to $17.75 per hour, marking a 2.4 per cent increase.
This adjustment applies to employees in federally regulated private sectors, including banks, postal and courier services, telecommunications, and interprovincial transport by air, rail, road, and marine, according to a press release from the Canadian government.
The wage hike will benefit both Canadian citizens and immigrants working in these sectors. Official data indicates that Indians make up around 22 per cent of Canada’s temporary foreign workers. Additionally, the 2021 Canadian census reported approximately 1.35 million individuals of Indian origin, accounting for around 3.7 per cent of the country’s population. Many within these groups are expected to benefit from the new wage increase.
Federal Minimum Wage Adjusted For Inflation
Canada’s federal minimum wage is adjusted annually every April based on changes in the Consumer Price Index (CPI). The current 2.4 per cent increase reflects the average CPI for 2024.
Employers are required to update their payroll systems starting today to ensure all employees, including interns, are paid the correct rate. In cases where a provincial or territorial minimum wage exceeds the federal rate, the higher rate must be applied.
“The federal minimum wage brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board. Today’s increase brings us one step closer to building a more fair economy,” said Steven MacKinnon, Minister of Employment, Workforce Development, and Labour, in a press release.
Four Provinces Increase Minimum Wages
In addition to the federal minimum wage hike, four provinces have also raised their minimum wage rates:
- Nova Scotia: Increased from $15.30 to $15.65 per hour
- Newfoundland and Labrador: Raised from $15.60 to $16.00 per hour
- New Brunswick: Up from $15.30 to $15.65 per hour
- Yukon: Increased from $17.59 to $17.94 per hour
Provinces Where Minimum Wage Remains Unchanged
In other provinces and territories, the minimum wage remains the same for now, although many are actively reviewing their rates. Nunavut continues to have the highest minimum wage in Canada at $19.00 per hour, with Yukon’s new rate closely following at $17.94 per hour.
