Starting April 1, 2025, Canada’s federal minimum wage will be increasing by 2.4 per cent.
A news release posted on Friday by Employment and Social Development Canada states that it will rise by 45 cents to $17.75 per hour.
This increase from the current $17.30 is based on the 2024 Consumer Price Index (CPI) and is part of an annual adjustment to keep up with the cost of living.
Since the federal minimum wage was introduced in 2021, it has been reviewed each year to reflect inflation.
It went up to $15.55 in 2022, $16.65 in 2023, and $17.30 in 2024. The new rate applies to workers in federally regulated industries like banking, postal and courier services, and interprovincial air, rail, road, and marine transportation—including part-time, temporary, and lower-wage positions.
Employers in these sectors are required to update payroll records to meet the new wage by April 1. If a province or territory has a higher minimum wage, employers must pay the greater amount.
Steve MacKinnon, Minster of Employment, states in the release that “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.”
The government says these wage adjustments are designed to help workers and interns keep pace with the rising cost of living.
Unfortunately for Torontonians, our city is still among the top most expensive places to rent across the country. While we are down from this time last year, a one bedroom apartment in Toronto averages at $2353 per month.
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