Canada has officially increased its federal minimum wage, with the hourly rate set to reach $17.30 this week starting from Monday, April 1, 2024, according to Employment and Social Development Canada (ESDC).
This marks a notable rise from last year’s rate of $16.65 per hour, reflecting adjustments based on Canada’s Consumer Price Index (CPI) for the previous calendar year.
Statistics Canada reported a 3.9 per cent increase in the CPI on an annual average basis in 2023, following a 40-year high surge of 6.8 per cent in 2022 and a 3.4 per cent increase in 2021. The agency highlighted that the annual average rise in 2023, apart from 2022, is the most substantial since 1991.
The federal minimum wage applies to employees and interns in the federally regulated private sector, including businesses such as banks, telecommunications companies, and interprovincial air, marine, rail, and road transportation, as outlined by Canadian law firm Samfiru Tumarkin LLP.
Various provinces are also increasing their hourly minimum wages on April 1, with New Brunswick ($15.30), Yukon ($17.59), Newfoundland and Labrador ($15.60), Nova Scotia ($15.20), and Prince Edward Island ($15.40) among those making adjustments. Prince Edward Island will see another increase on October 1, raising it to $16. Saskatchewan and British Columbia are set to raise their minimum wages on October 1 and June 1, respectively, while Ontario will follow suit on October 1.
However, some provinces, including Alberta, the Northwest Territories, Nunavut, and Quebec, will not witness a minimum wage increase, maintaining their current rates.
Samfiru Tumarkin LLP advises that if a province or territory has a higher minimum wage than the federal rate, federally regulated employers in that area must apply the higher rate.
