In less than one month, Canada’s federal minimum wage is set to increase by 65 cents, meaning millions of Canadians are in for a raise.
Effective as of April 1, 2024, employees who qualify will start making $17.30 per hour, as opposed to their current $16.65 per hour rates, based on the 2023 Consumer Price Index.
Established under Part III of the Canada Labour Code, the federal minimum wage was amended to rise with inflation, which came into force back on December 29 of 2021. The first adjustment took effect April 1, 2022.
As for who is entitled to the minimum wage increase, it applies to all workers and interns working in federally regulated private sectors.
This includes those employed at banks, telecommunications companies, postal and courier services, interprovincial air, rail, road, and marine transportation.
Should any provincial or territorial minimum wage rates be higher than the new federal minimum wage, employers must follow the higher rate of the two.
On April 1 last year in 2023, the federal hourly minimum wage jumped from $15.55 to $16.65.
Within Ontario, the current provincial minimum wage is $16.55 per hour, which came into effect October 1, 2023.
Unfortunately, minimum wage earners will likely need another source of income or two if you plan to retire here, as Canada is one of the world’s most expensive countries to retire in.