Hundreds of thousands of Canadians are about to get a pay increase in a week, as the federal minimum wage is scheduled to increase on April 1.
According to Samfiru Tumarkin LLP, a Canadian law firm that deals with employment law, the federal minimum wage applies to workers and interns working in the federally regulated private sector, including businesses like banks, telecommunications companies, and interprovincial air, marine, rail and road transportation.
Currently sitting at $17.30/hour, the amount will increase by 45 cents to $17.75 per hour next month.
Though it remains a modest increase, it is higher than what was projected by some Canadian litigation and immigration firms earlier this year. ImmigCanada anticipated that the new rate would be around $17.70 per hour.
Each year, the government adjusts the federal minimum wage amount to account for inflation. These pay bumps are based on last year’s Consumer Price Index (CPI).
In late February, Minister of Employment, Workforce Development, and Labour Steven MacKinnon said the increase scheduled for April brings Canada a step closer to “building a more fair economy.”
“The federal minimum wage 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
Provinces may adjust their hourly minimum wage amount in April 2025. Some do it in October. Yet more may decide not to raise it at all.
If your provincial or territorial minimum wage rate exceeds the federal rate, it is mandatory for your federally regulated employer to pay the higher of the two.
Even with projected bumps, the minimum wages in Canada are nowhere near a living wage.
