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6 min read
Working in Canada is a dream of most immigrants worldwide. This is largely thanks to the world-beating wages the country offers for skilled and unskilled labor. Understanding the minimum wage in Canada is crucial for employers and employees. The minimum wage in Canada varies by region, reflecting the diverse economic conditions and cost of living across the country. Knowing the minimum hourly wage across different provinces and territories can help you make informed decisions as you go through the Canadian job market or plan your business operations.
We break down the current minimum wage rates across Canada, helping you learn more about the wage standards in different parts of the country.
Understanding Federal Minimum Wage in Canada
The federal minimum wage in Canada serves as a baseline for labor standards, influencing wages across various sectors and regions. Below is an overview of the present federal minimum wage in Canada.
Current Federal Minimum Wage
The federal minimum wage in Canada is currently set at 17.30 CAD per hour, effective April 1, 2024, according to the Canadian government. This rate impacts approximately 30,000 employees in the federally regulated private sector. The federal government introduced this wage in 2021 and adjusted it annually based on Canada's Consumer Price Index from the previous calendar year. This year's increase reflects a 3.9% rise in the cost of living.
Industries Covered by Federal Minimum Wage
The federal minimum wage applies to workers in industries regulated by the federal government. These include:
- Federal Crown corporations, such as Canada Post,
- First Nations band councils and some Indigenous government jobs,
- Air transportation, including airlines and airports,
- Banks,
- Telecommunications companies,
- Some road transportation services that cross provincial or international borders,
- Radio and television broadcasting, and
- Port services and marine shipping.
Note that this list isn't exhaustive, and the federal minimum wage covers various other sectors under federal jurisdiction.
Relationship Between Federal and Provincial Minimum Wages
The connection between federal and provincial minimum wages in Canada has changed over time. Before 2021, the federal minimum wage was tied to the rate in the province or territory where the employee usually worked. However, the government re-established a separate federal minimum wage on December 29, 2021.
Now, employers must pay the higher of the two rates – the federal minimum wage or the provincial/territorial minimum wage where the work is performed. For instance, in British Columbia, where the minimum wage is 17.40 CAD (effective June 1, 2024), Canadian employers in federally regulated industries must pay this higher rate.
This system ensures that workers in federally regulated industries receive at least the federal minimum wage while benefiting from higher provincial rates. It's part of the government's effort to address income inequality and help workers keep up with the rising cost of living across Canada.
What is the Minimum Wage in Each Canadian Province?
The minimum wage in each Canadian province reflects the country's diverse economic markets and living conditions. Here is a detailed look into each province's current minimum wage rates, offering insights into how these figures impact workers and businesses.
Alberta
In Alberta, the minimum wage is set at 15.00 CAD per hour, according to the Albertan government. This rate has remained unchanged since October 1, 2018, when it was introduced as the highest minimum wage in Canada. Despite other provinces increasing their rates, Alberta has kept this figure steady. It's worth noting that for students under 18 working during school breaks or less than 28 hours per week while in school, a lower rate of 13.00 CAD applies.
British Columbia
British Columbia (B.C.) now boasts the highest minimum wage among Canadian provinces. As of June 1, 2024, the minimum wage in B.C. stands at 17.40 CAD per hour, according to the B.C. government. This represents a significant increase from previous years, reflecting the province's commitment to adjusting salaries based on the Consumer Price Index. The B.C. government aims to help around 400,000 residents with this wage increase.
Manitoba
Manitoba has recently improved its position in the minimum wage landscape. According to the Manitoban government, the province increased its minimum wage to 15.80 CAD per hour on October 1, 2024. This marks a notable rise from previous years, with the rate adjusting annually based on Manitoba's Consumer Price Index. This change impacts most employees, including part-time workers and those in various sectors like residential construction.
New Brunswick
New Brunswick has recently increased its minimum wage to 15.30 CAD per hour, effective April 1, 2024, according to the provincial government. This represents a significant jump from the previous rate of 14.75 CAD. The province adjusts its minimum wage annually on April 1, basing the changes on New Brunswick's Consumer Price Index in the prior calendar year.
Newfoundland and Labrador
The minimum wage in Newfoundland and Labrador is currently set at 15.60 CAD per hour, according to the provincial government, effective April 1, 2024. This rate reflects a series of increases over recent years, including a 0.45 CAD jump in April 2022, a 1.20 CAD increase in 2023, and another 0.60 CAD rise in 2024. The province has resumed annual adjustments based on Canada's Consumer Price Index.
Ontario
In Ontario, the minimum wage is set at 17.20 CAD per hour, according to the provincial government. This rate applies to most workers, with specific exemptions for certain job categories. Ontario frequently reviews its minimum wage, considering factors such as inflation and the economic landscape, which has led to regular increases in recent years.
Quebec
Quebec has a minimum wage of 15.75 CAD per hour, according to the Retail Council of Canada. This province also differentiates between general and tipped employees, with a lower rate for those in the hospitality sector, reflecting the reliance on tips in that industry.
Nova Scotia
In Nova Scotia, the minimum wage is 15.20 CAD per hour, according to the Nova Scotia government. The province has committed to annual increases. This strategy is part of a broader initiative to address poverty and ensure a living wage for all workers.
Prince Edward Island
Prince Edward Island (PEI) has a minimum wage of 16.00 CAD per hour, according to the PEI government. This reflects the island's efforts to attract and retain workers in a competitive labor market. The government conducts regular reviews to ensure the wage keeps pace with the cost of living and economic trends.
Saskatchewan
In Saskatchewan, the minimum wage is 15.00 CAD per hour, according to the provincial government. However, the province plans to review and potentially raise this rate, as many advocates argue that it does not adequately support workers, especially in light of rising living costs.
What is the Minimum Wage in Each Canadian Territory?
Minimum wage rates in Canada's territories play a crucial role in addressing these regions' unique economic challenges and cost of living. Below is an overview of the current minimum wage in each Canadian territory, highlighting the variations and factors influencing these rates.
Northwest Territories
The minimum wage in the Northwest Territories is currently set at 16.70 CAD per hour, effective September 1, 2024, according to the territorial government. This represents a 4% increase from the previous rate of 16.05 CAD. The Northwest Territories has adopted a formula-driven approach to adjust its minimum wage annually. This method considers changes in the CPI for Yellowknife and the average hourly wage in the territory. The goal is to ensure salaries keep pace with rising living costs while providing stability for businesses.
Nunavut
Nunavut boasts the highest minimum wage in Canada at 19.00 CAD per hour, according to the territorial government, effective January 1, 2024. This significant increase from the previous rate of 16.00 CAD aims to address the territory's exceptionally high cost of living. The 18% raise puts Nunavut's minimum wage over 2.00 CAD higher than the second-highest in the country. It's worth noting that minimum wage legislation in Nunavut doesn't apply to trappers and those employed in commercial fisheries.
Yukon
As of April 1, 2024, Yukon's minimum wage has increased to 17.59 CAD per hour, according to its territorial government statistics. This rate is adjusted annually based on Whitehorse's CPI. The Yukon government views this inflation-tied minimum wage as a tool to help reduce poverty, increase affordability, and address income inequality across the territory. Yukon has a Fair Wage Schedule that outlines minimum wage requirements for various government workers and tradespeople.
These territorial minimum wages reflect Canada's northern regions' unique economic conditions and living costs. As you explore job opportunities or plan business operations in these areas, it's crucial to consider these rates alongside the higher costs associated with goods and services in these remote locations.
FAQs
Which Canadian Province Offers the Highest Minimum Wage?
British Columbia currently has the highest provincial minimum wage at USD 17.40 per hour. However, across all of Canada, Nunavut tops the list with a minimum wage of USD 19.00 per hour.
Which Province in Canada Has The Highest Average Wages?
According to Statistics Canada, the average salary across all industries in Canada is approximately 72,800.00 CAD per year or 34.85 CAD per hour. Alberta reports the highest average salary among the provinces, while the Maritime provinces have the lowest.
How Often do Minimum Wages Change?
Minimum wages can change annually or biannually, depending on the province or territory's regulations. Some regions may adjust their rates based on inflation or economic conditions, while others may set fixed schedules for increases.
