On April 1, 2024, the federal minimum wage in Canada is set to rise from $16.65 to $17.30 per hour, marking a significant adjustment to keep pace with inflation. This increase, amounting to 65 cents, is expected to benefit approximately 30,000 Canadian workers employed in federally regulated sectors nationwide.
Federally regulated private sectors in Canada encompass a wide range of industries, including banking, postal and courier services, and interprovincial transportation by air, rail, road, and ocean, among others. These sectors are mandated to adhere to the federal minimum wage requirements, ensuring fair compensation for workers.
In addition to the federal minimum wage hike, workers in these industries may receive a higher wage rate if the minimum wage set by their respective province or territory exceeds the federal standard. This ensures that workers are compensated fairly following regional cost of living and economic conditions.
The adjustment of the federal minimum wage is determined annually on April 1st based on the Consumer Price Index (CPI), a measure of inflation. This indexing mechanism ensures that the minimum wage keeps pace with the rising cost of living, safeguarding the purchasing power of workers’ earnings.
In the previous year, on April 1, 2023, the federal minimum wage experienced a notable increase from $15.55 to $16.65 per hour, reflecting a $1.10 adjustment. However, the forthcoming increase of 65 cents in 2024 signifies a more moderate adjustment than the previous year.
Beyond the federal minimum wage hike, several Canadian provinces are also slated to implement new minimum wage rates effective April 1, 2024. Among them, Yukon will witness the most significant increase, with its minimum wage rising by 82 cents to $17.59 per hour, making it the second-highest minimum wage in the country after Nunavut.
In Nova Scotia, the minimum wage will increase to $15.20 per hour from the current rate of $15. Similarly, New Brunswick’s minimum wage will rise from $14.75 to $15.30 per hour, while Newfoundland and Labrador will see an increase to $15.60 per hour, up by 60 cents.
Prince Edward Island (PEI) will also witness a wage hike, with its minimum wage rising by 40 cents to $15.40 per hour. These adjustments reflect ongoing efforts to ensure that workers receive fair compensation that aligns with the evolving economic landscape and cost of living.
