THE federal government announced on Friday that it is increasing the federal minimum wage to $17.75 per hour on April 1, 2025—a 2.4% increase.
This increase will ensure salaries for workers in federally regulated private sectors are keeping pace with year-over-year cost of living increases and help Canadians working in part-time, temporary and low- or minimum-wage jobs earn more.
Employers will be required to adjust their payroll information accordingly to ensure that these employees are paid at least the new hourly wage starting April 1. Should the provincial or territorial minimum wage rate exceed the federal rate, employers must pay the higher of the two.
Steve MacKinnon, Minister of Employment, Workforce Development and Labour, said: “The federal minimum wage brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board. Today’s increase brings us one step closer to building a more fair economy.”
Quick Facts
- The federal minimum wage is adjusted annually on April 1 based on Canada’s annual average Consumer Price Index relative to the previous calendar year (2.4% in 2024) and is rounded up to the nearest $0.05. Since its introduction in 2021, it has steadily increased:
− 2021: $15.00
− 2022: $15.55
− 2023: $16.65
− 2024: $17.30
− 2025: $17.75