The federal minimum wage is rising to $16.65 an hour on Saturday, up from $15.55.
The government says the increase is based on the consumer price index, which rose 6.8 per cent in 2022.
Your personal inflation rate: Calculate how you compare to the Canadian average
Ottawa sets the federal minimum wage and increases it each year on April 1 based on inflation.
Who does the federal minimum wage apply to?
The federal minimum wage doesn’t apply to everyone, only to workers in federally regulated industries. This includes public-sector workers such as public servants and parliamentary workers, and some federally regulated private sectors, such as:
- Interprovincial air, rail, road and marine transportation
- First Nations band councils
- Federal Crown corporations such as Canada Post
- Postal and courier services
- Radio and television broadcasting
The full list of federally regulated private industries can be found on the Government of Canada’s website.
For employees working in any other industry that is not regulated by the federal government, the provincial minimum wage applies. Each province and territory sets their own minimum wage independently.
What happens if your province’s minimum wage is higher than the federal one?
Employers in federally regulated industries must apply whichever minimum wage amount is higher. When the provincial or territorial minimum wage rate is higher than the federal rate, they have to apply that one instead.
Currently, all provinces and territories except Yukon have a minimum wage below the new federal one.
Are provincial and territorial minimum wages going up, too?
It depends on where you live.
Manitoba’s minimum wage will increase to $14.15 on Saturday, and to $15.30 on Oct. 1, to help low-income earners deal with the rising cost of living.
Nova Scotia, Prince Edward Island and Newfoundland and Labrador all plan further increases this year to bring the rate to $15 an hour by October.
Ontario’s minimum wage will increase to $16.55 on Oct. 1.
New Brunswick’s minimum wage will increase to $14.75 on Saturday.
Saskatchewan’s minimum wage will increase to $14 an hour on Oct. 1.
Yukon’s minimum wage will increase $16.77 on Saturday, higher than the federal minimum age.
Quebec will raise its minimum wage on May 1 to $15.25.
Alberta, Nunavut and the Northwest Territories have no plans for minimum wage increases this year. British Columbia rose its minimum wage in 2022 but doesn’t plan any further increases this year.