Federal Minimum Wage to Increase by 45 cents on April 1

Published by To Do Canada On March 3, 2025

Canada is increasing the federal minimum wage by 45 cents based on the 2024 Consumer Price Index.

The federal minimum wage will rise to $17.75 per hour on April 1, 2025, representing a 2.4% increase from the current rate of $17.30.

The adjustment is made annually to reflect changes in the Consumer Price Index (CPI) and is rounded to the nearest $0.05.

Since its introduction in 2021, the federal minimum wage in Canada has been adjusted annually to reflect changes in the cost of living. It increased to $15.55 in 2022, followed by $16.65 in 2023. In 2024, the rate rose to $17.30.

The increase applies to workers in federally regulated private sectors like banks, postal and courier services, and interprovincial air, rail, road, and marine transportation, including those in part-time, temporary, and low-wage positions.

Employers in these sectors must update payroll records to comply with the new rate by the effective date. If a province or territory has a higher minimum wage, employers must adhere to the greater amount.

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