The federal minimum wage will increase to $16.65 per hour on 1er next April, up $1.10.
Federal Labor Minister Seamus O’Regan said the increase is calculated using the Consumer Price Index (CPI), which rose 6.8% in 2022. Some 26,000 Canadian workers earn less than the current hourly rate, according to the government.
In cases where the provincial or territorial minimum wage is higher than the federal minimum wage, employers will have to apply the higher rate.
The federal minimum wage applies to all federally regulated private sectors, including banking, postal and courier services, as well as interprovincial air, rail, road and marine transportation.
Part of the Canada Labor Code was amended to set the federal minimum wage at $15 an hour, with the expectation that it would increase with inflation. The measure entered into force on December 29, 2021.
However, each year on the 1er April, the federal minimum wage is adjusted according to the Canadian Consumer Price Index based on the previous calendar year.
The first adjustment came into effect on 1er April last year.
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