Mark your calendars Canadians, the federal minimum wage is increasing next month.
As April 1st approaches, many Canadians across the country are gearing up for a significant change in their paychecks. The federal government's decision to raise the minimum wage is set to bring about notable shifts in the financial landscape for workers in various sectors. Let's delve into what this increase entails and how it will affect employees nationwide.
Understanding the Increase:
The federal minimum wage in Canada is set to rise, as mandated by the country's(CPI) for the preceding year. This index, published by Statistics Canada, provides the basis for adjustments to ensure that wages keep pace with inflation. Effective April 1, 2024, the federal minimum wage will stand at $17.30 per hour, up from the previous rate of $16.65 per hour set in 2023.
Who will receive the wage increase:
It's crucial to recognize that the federal minimum wage only applies to employees and interns in federally regulated private sectors.
According to Canadian law firm Samfiru Tumarkin LLP, this includes industries such as banking, telecommunications, and interprovincial air, marine, rail, and road transportation.
Impact on Different Provinces:
While the federal increase is significant, it's worth noting that many provinces are also making adjustments to their minimum wage rates. For instance, New Brunswick ($15.30), Yukon ($17.59), Newfoundland and Labrador ($15.60), Nova Scotia ($15.20), and Prince Edward Island ($15.40) are all raising their hourly minimum wages on April 1.
In addition, Saskatchewan and British Columbia are also set to see increases in their minimum wages later in the year. Saskatchewan will witness its minimum wage rise to $15 on October 1, while British Columbia will see an increase to $17.40 per hour on June 1. Prince Edward Island will also see an additional raise on October 1 to $16.
Samfiru Tumarkin LLP says that if the minimum wage in a province or territory is higher than the federal amount, federally regulated employers in the province must apply the higher rate.
Ontario's Approach:
Ontario will likely be part of this wave of wage adjustments. The Ontario government plans to raise the minimum wage on October 1, continuing its practice of annual revisions. This updated rate will remain in effect for the first nine months of 2025. Samfiru Tumarkin LLP says the Ontario government will likely announce the rate increase in or around April 2024.
