A lot of Canadians are about to get a raise this week, as the federal minimum wage for 2025 is set to increase on April 1.
No, this is not an April Fools’ joke. The hourly amount is adjusted annually on that day to keep pace with inflation.
Samfiru Tumarkin LLP, a Canadian law firm that specializes in employment law, says the federal minimum wage applies to employees and interns working in the federally regulated private sector. This includes businesses like banks, telecommunications companies, and interprovincial air, marine, rail and road transportation.
The federal hourly wage went up in 2024 from $16.65 to $17.30. This year, it will increase by 45 cents from $17.30 to $17.75.
The modest increase is higher than what was projected by some Canadian litigation and immigration firms earlier this year. ImmigCanada predicted the new rate would be around $17.70 per hour. This pay bump is based on last year’s Consumer Price Index (CPI).
In February, Minister of Employment, Workforce Development, and Labour Steven MacKinnon said the federal minimum wage increase for 2025 brings Canada a step closer to “building a more fair economy.”
“[It] brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board,” he shared.
Federal vs. provincial minimum wage in 2025
Several provinces also raise their hourly minimum wages in April, while some do so in October. Others may decide not to increase their minimum wage yearly.
If your provincial or territorial minimum wage rate exceeds the federal rate, your federally regulated employer must pay the higher of the two.
Even with projected bumps, the minimum wages in Canada are nowhere near a living wage.
