The federal government will raise the federal minimum wage to $18.15 per hour on April 1, 2026, a 2.1% increase tied to last year’s inflation rate.
The new rate applies to workers in the federally regulated private sector, which includes industries such as banking, telecommunications, and interprovincial transportation.
Minister of Jobs and Families Patty Hajdu said the annual adjustment is designed to protect workers at the lower end of the pay scale.
“Ensuring the federal minimum wage rises with inflation is a floor that protects workers, especially those in the lowest paid jobs in federally regulated sectors. Keeping the minimum wage up to date helps maintain a reliable baseline that strengthens earnings and keeps workplace standards strong for all workers.”
Since the federal government introduced a standalone federal minimum wage in 2021, the rate has risen a cumulative 21%.
How the adjustment works
The federal minimum wage is indexed to Canada’s annual average Consumer Price Index (CPI). Each year on April 1, the rate is adjusted based on the CPI for the previous calendar year and rounded up to the nearest $0.05. The CPI rose 2.1% in 2025.
Where a provincial or territorial minimum wage exceeds the federal rate, federally regulated employers must pay the higher of the two rates.
The federal government said the wage increase is part of a broader set of measures aimed at reducing the cost of living, including the Canada Groceries and Essentials Benefit and the Food Security Fund.
