Canada raises federal wage to $17.75 per hour from April 2025

​​​​​​Highlights: Canada increases Federal Minimum Wages by 2.4%

• The Canadian Government has announced an increase in the federal minimum wage.
• Canada's updated federal minimum wages are now set at $17.75 per hour, effective April 2025.
• The 2.4% wage increase aligns with the Consumer Price Index (CPI) to support workers.
• The price hike will impact employees at the federal level in regulated sectors such as transportation and banking.

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Canada Increases the Federal Minimum Wage to $17.75 per hour

The Canadian Government recently announced an increase in the federal minimum wage by 2.4%. The minimum wage is set to increase to $17.75 per hour and will be effective from April 1, 2025. The increase in wages is according to the annual Consumer Price Index. The increase in wages is aimed at supporting the workers in Canada in dealing with rising living costs.

 

The newly announced wages are set to impact employees at the federal level in regulated sectors such as:

• Telecommunications
• Banking
• Interprovincial transportation

 

Provinces and territories with a minimum wage higher than the federal rate would be required to pay the higher amount. The wage revisions were introduced to stabilize low-wage, temporary, or part-time workers.

 

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How is the Federal Minimum Wage calculated?

Federal minimum wages are calculated annually on the 1st of April, as per the average CPI of the preceding year. The rate is always rounded off to the nearest $0.05; however, the wages have been consistent since 2021.

 

The table below has the years 2021-2025, along with the wages:

Year	Wages
2021	$15.00
2022	$15.55
2023	$16.65
2024	$17.30
2025	$17.75

 

The wage adjustments also included other workplace policies aimed at improving the well-being of the employee. As per the latest legislative changes, individuals with improved job security have more access to factors such as work-life balance, parental leave, and health-related issues.

 

 

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