The federal minimum wage in Canada is rising to $17.30 an hour on April 1, 2024.
This is a 3.9 per cent increase from the current wage rate of $16.65 per hour. That’s in line with the annual average Consumer Price Index for 2023 and reflects efforts to align wages with inflation rates.
The adjustment is expected to benefit approximately 30,000 employees in the federally regulated private sector, Ottawa said in a press release.
It mandates employers to update their payroll systems to ensure that all employees, including interns, are paid the correct hourly wage from the specified date. In instances where provincial or territorial minimum wages exceed the federal rate, employers are obliged to adhere to the higher rate.
The Minister of Labour and Seniors, Seamus O’Regan Jr., emphasized the need for this adjustment, stating, “Everyone’s feeling the pinch of inflation. So, wages must keep up with the cost of living.” This remark underscores the government’s response to the financial pressures facing many Canadians.
Introduced in 2021, the federal minimum wage is subject to annual adjustments based on the previous year’s Consumer Price Index. This systematic approach aims to ensure that wages remain in step with the cost of living. The increase follows previous adjustments, from $15.55 in 2022 to $16.65 in 2023.
The federal government is also implementing several initiatives to promote fairness, inclusivity, and safety in federally regulated workplaces. These include the enforcement of the Pay Equity Act, ensuring equal pay for work of equal value, enhancing job protections for gig workers, and mandating salary data reporting for larger employers to highlight wage gaps. Additionally, the launch of the Equi’Vision website marks a step towards transparency, offering accessible data on workforce representation and pay disparities.
