In a move to support workers in federally regulated sectors, Canada is set to increase the federal minimum wage by 65 cents on April 1, raising it from $16.65 to $17.30 per hour.
This adjustment follows the government’s commitment to annual increases since 2021 to keep pace with inflation. At that time, the Canada federal minimum wage was $15, marking a steady rise over the years.
The increase in the federal minimum wage is based on Canada’s Consumer Price Index (CPI) for the previous calendar year. In 2023, the CPI recorded an annual average increase of 3.9 percent, influencing the upcoming wage adjustment.
Who Is Eligible for the Pay Bump?
The federal minimum wage increase specifically applies to workers in federally regulated industries, which encompass a range of sectors such as air transport, banking, postal services, and telecommunications including telephone and cable systems. A comprehensive list of federally regulated industries can be found on the federal government’s website.
Eligibility for the pay increase also depends on how the federal minimum wage compares to each province and territory’s minimum wage. If the minimum wage set by the province or territory of employment is higher than the federal minimum wage, the provincial or territorial wage rate takes precedence.
Exceptions to the federal minimum wage apply to workers under certain circumstances. For instance, federal interns and workers under the age of 18 will also receive the pay increase. Additionally, workers registered under and paid according to a provincial apprenticeship act are exempt from the federal minimum wage requirements.
What If You Don’t Work Hourly?
For federal workers not paid on an hourly basis, they must receive at least the equivalent of the minimum wage. This is determined by dividing the salary amount by the number of hours worked or establishing a rate equivalent to the minimum wage, as determined by the Minister of Labour.
Minimum Wage Across Canada
While the federal minimum wage 2024 is set to increase, several provinces and territories in Canada have already made or are planning further adjustments to their minimum wages:
- Saskatchewan: $14 to $15 on Oct. 1, 2024.
- Nova Scotia: Currently $15, increasing 20 cents in April.
- New Brunswick: Increasing from $14.75 to $15.30 in April.
- Newfoundland and Labrador: Increasing 60 cents to $15.60 in April 2024.
- Prince Edward Island: Increasing from $15 per hour to $16 in April.
Other provinces and territories maintain their current minimum wage rates, with Alberta at $15, Quebec at $15.25, Manitoba at $15.30, Nunavut at $16, the Northwest Territories at $16.05, Ontario at $16.55, and British Columbia at $16.75.
These changes reflect ongoing efforts to ensure fair compensation for workers across various sectors and regions in Canada.
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