Canada's federal minimum wage goes up soon and here's what people will earn

The federal minimum wage in Canada is set to increase in less than three months. The hourly amount is adjusted annually on April 1 to keep pace with inflation.

On the same date last year, the government raised the federal hourly minimum wage from $16.65 to $17.30.

Per Canadian law firm Samfiru Tumarkin LLP, the federal minimum wage applies to employees and interns working in the federally regulated private sector, including businesses like banks, telecommunications companies, and interprovincial air, marine, rail and road transportation.

All minimum wage increases are based on the average of Canada's Consumer Price Index (CPI) for the previous calendar year. The CPI numbers for December 2024 will be released on January 21, providing an exact idea of how much the federal minimum wage will be boosted.

Some Canadian law and immigration firms already have forecasts. Immigration consultancy ImmigCanada projects that the rate will be around $17.70 per hour, but for now, take that number with a grain of salt.

Employment and Social Development Canada (ESDC) confirmed to Daily Hive that an increase is coming.

Next week, after the December CPI is published, the exact adjustment will be calculated and determined. The new minimum wage will be publicized on the government's labour program website before April 1, 2025.

Provincial vs. federal minimum wage

Many provinces also raise their hourly minimum wages in April, while some do so in October. 

However, others may decide not to raise their minimum wage yearly.

Samfiru Tumarkin LLP says that if the minimum wage in a province or territory is higher than the federal number, federally regulated employers in the province must apply the higher rate.

For more information on government wages, visit the federal labour standards page or contact the Labour Program at 1-800-641-4049.

Even with projected bumps, the minimum wages in Canada are nowhere near a living wage.