Minimum Wage in Canada 2025: What You Need to Know

The minimum wage in Canada varies depending on the province or territory you live in. Each region sets its own minimum wage to reflect local economic conditions, and this wage is the legal minimum that employers must pay their workers.

For most workers, the provincial or territorial minimum wage applies. However, for federally regulated employees—such as those working in banks, telecommunications, or federal transportation—the federal minimum wage applies. As of October 2024, the federal minimum wage is $17.30 per hour, but if the provincial minimum wage is higher, workers must be paid the higher rate.

What is Minimum Wage?

Minimum wage is the lowest hourly rate that employers are legally required to pay their employees. It’s designed to ensure that workers can meet basic living costs. However, the actual buying power of minimum wage depends heavily on regional costs of living.

Key Facts About Minimum Wage in Canada

• Federal Minimum Wage: Applies to federally regulated industries across Canada and is updated annually on April 1st based on inflation. The rate is currently $17.30 per hour (as of 2024).
• Provincial and Territorial Minimum Wages: Each province and territory sets its own rate, and these rates often differ significantly. For example, minimum wages in Alberta and Ontario are different due to varying economic factors.
• Exceptions: Certain workers, such as students, liquor servers, or farmworkers, may have different minimum wage rates in some provinces.

Who Does the Federal Minimum Wage Apply To?

The federal minimum wage applies to employees working in federally regulated industries, such as:

• Banks
• Interprovincial and international transportation (trucking, railways, airlines)
• Telecommunications (e.g., broadcasting, phone, and internet providers)
• Crown corporations

If you’re employed in one of these industries, your employer must adhere to the federal minimum wage or the provincial rate—whichever is higher.

Minimum Wage by Province or Territory

In addition to the federal minimum wage, provinces and territories set their own minimum wage rates. Some regions adjust their minimum wage annually, while others may only do so sporadically. For specific details, visit the following dedicated blogs for minimum wage in Ontario, Alberta, and British Columbia:

• Minimum Wage in Ontario
• Minimum Wage in Alberta
• Minimum Wage in B.C.

Each blog explores how the minimum wage is set, who it applies to, and how it compares to the cost of living in that province.

Challenges for Minimum Wage Workers

For many Canadians, earning minimum wage can still be a challenge due to rising costs of living. This is particularly true in cities like Toronto, Vancouver, and Calgary, where housing and basic necessities continue to outpace wage growth.

If you believe your employer is paying less than the minimum wage, it’s essential to know your rights and take action. Minimum wage laws are strictly enforced, and employees have the right to be paid the legal minimum.

Additional Resources for Canadian Employees

Navigating your rights as an employee in Canada goes beyond just understanding minimum wage. Here are more resources to help you learn about your entitlements, from statutory holidays to severance pay, tailored to each province:

Statutory Holidays by Province

Find out which holidays you’re entitled to and whether you qualify for holiday pay in your region:

• Statutory Holidays in Alberta
• Statutory Holidays in B.C.
• Stat Holidays in Manitoba
• Statutory Holidays in New Brunswick
• Stat Holidays in Newfoundland and Labrador
• Stat Holidays in Nova Scotia
• Statutory Holidays in Ontario
• Stat Holidays in P.E.I.
• Stat Holidays in Saskatchewan

Vacation Pay and Vacation Time

Learn about your vacation entitlements, how vacation pay is calculated, and what employers must provide:

• Vacation Pay in Ontario
• Vacation Pay in Alberta
• Vacation Pay in British Columbia

Severance Pay

If you’ve been let go, understand your severance pay rights based on your province’s laws and common law:

• Severance Pay in Ontario
• Severance Pay in Alberta
• Severance Pay in British Columbia