Federal Minimum Wage to Increase by $1.10 on April 1

Canada is increasing the federal minimum wage by $1.10 based on the 2022 Consumer Price Index.

Effective April 1, 2023, the federal minimum wage will increase from $15.55 to $16.65 per hour. This increase is based on the Consumer Price Index, which rose by 6.8% in 2022.

The federal minimum wage is established under Part III (Labour Standards) of the Canada Labour Code, which was recently amended to include a federal minimum wage of $15 per hour that rises with inflation. This measure came into force on December 29, 2021, with the first adjustment taking place on April 1, 2022.

The federal minimum wage applies to workers and interns in federally regulated private sectors, including banks, postal and courier services, and interprovincial air, rail, road, and marine transportation.

According to the new release, the increase will benefit approximately 26,000 Canadian workers who currently earn less than the current rate, making their lives more affordable and helping them to achieve greater financial stability.

Ottawa says federally regulated private-sector employers must adjust their payroll information to ensure that workers and interns are paid correctly as of April 1, 2023. Where the provincial or territorial minimum wage rate is higher than the federal minimum wage, employers must apply the higher rate.