Ottawa increasing federal minimum wage in April

Ottawa has announced it is raising the federal minimum wage in April.

Effective April 1, 2025, the wage will rise to $17.75 per hour, up from the current $17.30 hourly rate.

The change marks a 2.4-per-cent increase.

“The federal minimum wage brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board,” says Steven MacKinnon, minister of employment, workforce development and labour.

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, according to the federal government.

Recently, British Columbia announced that the lowest-paid workers in the province will see a 2.6-per-cent wage increase on June 1, 2025, keeping pace with inflation.

Minimum wages across Canada

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 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

Notes:

• British Columbia: The minimum wage is set to rise to $17.85 per hour on June 1, 2025.
• Nova Scotia: An increase to $15.70 per hour is planned for April 1, 2025, followed by another rise to $16.50 per hour on October 1, 2025.
• Yukon: Will increase its minimum wage to $17.94 on April 1, 2025.
• Quebec: Minimum wage is set to increase from $15.75 to $16.10 per hour on May 1, 2025.
• Newfoundland and Labrador: As of April 1, 2025, the minimum wage will increase to $16.00 per hour

What are the effects of an increase in wages?

One in three (32 per cent) of Canadian companies say mandatory minimum wage hikes result in increased salaries/wages across the entire company – not just for minimum wage workers, found a 2024 survey.

Nearly one in five businesses say that upcoming minimum wage hikes will result in them:

• using more automation/AI (19 per cent)
• decreasing the number of hours that employees work (17 per cent)
• reducing their workforce (14 per cent)
• outsourcing more work (14 per cent)

Many workers – even those earning $100,000 annually – are living paycheque to paycheque, according to a previous report.

When it comes to addressing poverty in developing countries, increasing minimum wages can have its pros and cons, according to T. H. Gindling of the University of Maryland Baltimore County. These are:

_{Source: IZA World of Labor}