The Canadian government has increased the ‘minimum wage’ of interns, part-time, temporary and low or minimum-wage workers. To keep up with the cost of living, the federal minimum wage will increase from $16.65 to $17.30 per hour from April 1, 2024. This adjustment reflects the 3.9% increase in Canada’s annual average Consumer Price Index for 2023 and is aligned with inflation.
The minimum wage is the lowest wage rate that an employer can legally pay its employees and is a core labour standard. Minimum wages are also set and adjusted in different ways: in legislation or regulations; by the government of the day or an independent board; and based on inflation, average wage rates or other economic factors.
The rules provide for situations where employees are paid on a basis other than an hourly rate. In particular, after job offers, such employees must receive at least the equivalent of the minimum wage.
New Minimum Wage Across Canadian Provinces
Nova Scotia: Effective as of April 1, 2024, the minimum wage rate will be adjusted with inflation plus an additional 1% annually to $15.20.
British Columbia: British Columbia minimum wage will rise from $16.75 to $17.40 on June 1, 2024.
Quebec : On May 1, 2024, Quebec’s minimum wage will increase to $15.75
Newfoundland & Labrador: As of April 1, 2024, the minimum wage is $15.60 per hour.
Prince Edward Island : $15.40, effective as of April 1, 2024
Yukon: Effective April 1, 2024, the Yukon’s minimum wage will increase to $17.59 per hour.
Approximately 30,000 employees in the federally regulated private sector will benefit from this raise. Employers are required to adjust their payroll information accordingly to ensure that all employees receive the correct hourly wage starting April 1, 2024. If the provincial or territorial minimum wage rate exceeds the federal rate, employers must pay the higher of the two.
The Government of Canada introduced the federal minimum wage in 2021. It is adjusted annually based on Canada’s annual average Consumer Price Index from the previous calendar year. In 2022, the federal minimum wage was increased to $15.55, and in 2023, it was increased to $16.65.