Federal Minimum Wage in Canada (2024)

What is the federal minimum wage in Canada in 2024?

The federal minimum wage in Canada is the lowest hourly rate that employers can legally pay their employees working in federally regulated industries. It sets the standard for fair compensation, ensuring that workers across various industries are paid adequately for their labor.

Current rate for 2024

On April 1, 2024, the federal minimum wage in Canada rose to $17.30 per hour from $16.65 per hour. The increase was announced by Employment and Social Development Canada (ESDC) on January 25, 2024.

Annual increase explained

The Government of Canada has implemented a policy of automatically adjusting the federal minimum wage each year on April 1.

These adjustments are tied to the Consumer Price Index (CPI), which measures the average change over time in the prices paid by consumers for goods and services.

In 2023, the CPI rose by 3.9 per cent on an annual average basis, which has influenced the upcoming increase in the minimum wage.

Understanding the Consumer Price Index

The Consumer Price Index is a critical economic indicator that helps gauge inflation and the cost of living.

By linking the minimum wage increase to the CPI, the government ensures that wages keep pace with economic changes, thereby supporting the purchasing power of workers.

Who does the federal minimum wage apply to?

The federal minimum wage applies to employees and interns working in the federally regulated private sector.

This includes businesses like:

• Banks
• Telecommunications companies
• Interprovincial air, marine, rail and road transportation

Federally regulated companies were required to adjust wages to align with the new rate as of April 1, 2023 to ensure that all workers were properly paid.

What happens if a province’s minimum wage is higher than the federal wage?

If the minimum wage in a province or territory is higher than the federal minimum wage, the federally regulated employer must apply the higher rate.

When was the federal minimum wage created?

Canada adopted the current approach to federal minimum wage on December 29, 2021, when the rate was set at $15 per hour for federally regulated workers and interns.

A federal minimum wage was first introduced in 1965, at a rate of $1.25 per hour, before it was ended in 1996 and federally regulated businesses relied on provincial and territorial rates.

History of rate increases

The Government of Canada has raised the federal minimum wage every year since 2021:

• April 1, 2024 – $17.30 per hour
• April 1, 2023 – $16.65 per hour
• April 1, 2022 – $15.55 per hour
• December 29, 2021 – $15.00 per hour

Minimum wage by province

Provinces across Canada, including Ontario, Alberta, and B.C., set their own minimum wage for provincially regulated employees.

These rates may vary between provinces.

Do I get severance if I’m fired from a minimum wage job?

The short answer is yes. You are owed a severance package if you lose your job working as a federally regulated employee earning minimum wage.

All non-unionized, federally regulated employees are entitled to full severance pay when they are fired or let go, regardless of whether they were in full or part-time positions.

If you do lose your job in Ontario, Alberta or B.C. contact our employment lawyers to find out how much you may be owed — it could be as much as 24 months’ pay.