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

Highlights: Canada increases federal wage to $17.75 per hour from April 2025

• From April 1, 2025, Canada's federal minimum wage has increased by $17.75 per hour.
• This impact will be eligible for sectors like banking and transportation and interprovincial transportation.
• A 2.4% hike would align with the annual Consumer Price Index and is part of on-going efforts.
• The wage revision aims to foster income stability and a fairer economy.
   

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Canada increase the federal minimum wage with a hike of 2.4%

Canada's government has increased the federal minimum wage by 2.4% per hour since April 1, 2025. The hike of 2.4% aligns with the annual Consumer Price Index and is part of on-going efforts to keep earning in federally regulated private sectors. This increase will affect the payroll of employees in sectors regulated at the federal level, including industries such as banking, telecommunication, and interprovincial transportation. Employers must update the payrolls to reflect the new rate. Applicants must pay a higher if the provincial or territorial minimum wage is higher than the federal rate.
 

The Canadian government increased the wage revision approach to stability for workers in part-time, temporary, and low-wage roles. The federal minimum wage brings stability and certainty to Canadian workers and businesses alike, helping to reduce income inequality across the board.
 

Consumer Price Index recalculation

Since April 1, 2021, the federal minimum wage has been recalculated yearly based on the average Consumer Price Index for the previous year. The rate is rounded off to $0.05. Below are the annual increases in the federal minimum wage since 2021:
 

• 2021: $15.00
• 2022: $15.55
• 2023: $16.65
• 2024: $17.30
• 2025: $17.75
   

In addition to adjusting wages, it planned for better employee well-being, including improved job protections and expanded access to benefits related to health, parental leave, work-life balance, and absence.
 

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