Canada’s Federal Minimum Wage Set to Increase in April 2025
Canada’s federal minimum wage will see its annual adjustment on April 1, 2025, to align with inflation trends. This yearly adjustment ensures wages stay in line with the rising cost of living.
Recent Minimum Wage Trends
On April 1, 2024, the federal hourly minimum wage rose from $16.65 to $17.30. The upcoming increase will follow the same formula, relying on Canada’s Consumer Price Index (CPI) for 2024.
The CPI data for December 2024, released on January 21, 2025, will determine the exact wage adjustment. Employment and Social Development Canada (ESDC) will publish the updated rate on the government’s labour program website before April 1.
Who Does the Federal Minimum Wage Apply To?
The federal minimum wage applies to employees and interns working in the federally regulated private sector, including:
- Banks
- Telecommunications companies
- Interprovincial transportation (air, marine, rail, and road)
If a province’s minimum wage exceeds the federal rate, employers in that province must apply the higher wage.
Predicted Increase for 2025
ImmigCanada, an immigration consultancy, forecasts a potential rise to $17.70 per hour. However, this remains an estimate until CPI data confirms the adjustment.
How Does the Federal Minimum Wage Compare?
Canada’s provinces also adjust minimum wages annually, with most increases happening in either April or October. However, not all provinces raise wages each year.
Despite increases, minimum wages in Canada often fall short of what is considered a living wage — the amount required to meet basic expenses like housing, food, and transportation.
Need More Information?
For further details on the federal minimum wage and labour standards, visit the government’s labour standards page or call the Labour Program at 1-800-641-4049.
Keep an eye on the labour program website for official announcements about the upcoming wage increase.
More…
- https://www.blogto.com/city/2025/01/canadas-federal-minimum-wage-goes-up
- https://www.statcan.gc.ca/en/subjects-start/prices_and_price_indexes/consumer_price_indexes
- https://c212.net/c/link/?t=0&l=en&o=3815539-1&h=802549112&u=https%3A%2F%2Fwww.canada.ca%2Fen%2Femployment-social-development%2Fprograms%2Femployment-standards%2Fpay-deductions.html&a=Pay+and+minimum+wage%2C+deductions%2C+and+wage+recovery
