Federal Minimum Wages in Canada to Increase to $16.65 on April 1, 2023

Canada’s federal government has announced that the minimum wages will increase to $16.65 per hour starting April 1, 2023. This increase will benefit approximately 26,000 workers in federally regulated industries, such as banking, telecommunications, and interprovincial transportation.



This increase is part of the government’s plan to make life more affordable for Canadians and to support workers who have been impacted by the COVID-19 pandemic. The minimum wage increase is expected to boost the income of low-wage workers and help reduce poverty and income inequality.

What is the Federal Minimum Wages?

The Federal Minimum Wage is the lowest amount that an employer can legally pay their employees for their work. This wage is set by the Canadian Government and applies to all industries and sectors, including those that are not covered by provincial or territorial legislation.

The Federal Minimum Wage is currently $15.00 per hour, which means that any worker who is earning less than this amount is entitled to a pay increase to meet the new minimum wage of $16.65 per hour.

Why is the Minimum Wages Increasing?

The minimum wage is increasing to help address the growing income inequality in Canada. Many workers across the country struggle to make ends meet, despite working full-time jobs. This increase will help to ensure that workers are paid a fair wage that reflects the cost of living and the value of their labor.

In addition, increasing the minimum wage can have positive economic effects. When workers earn more, they have more money to spend on goods and services, which can stimulate economic growth and create more jobs.

Who will Benefit from the Increase?

The increase in the Federal Minimum Wage will benefit millions of workers across Canada, particularly those in low-wage jobs. This includes workers in industries such as retail, hospitality, and food service, where wages are often low.

The increase will also benefit young workers and new immigrants, who are more likely to work in low-wage jobs. By increasing the minimum wage, the Canadian Government is helping to ensure that these workers receive a fair wage for their labor and have a better chance of achieving financial stability.

How will Employers be Affected?

Employers will need to adjust their payroll systems to ensure that all workers are paid the new minimum wage of $16.65 per hour. This may involve making changes to their budget and staffing levels, but it is important to remember that paying workers a fair wage can have positive long-term benefits for businesses, including increased productivity and reduced turnover.

Employers should also be aware that failure to comply with the new minimum wage could result in penalties and legal action. It is important for employers to stay up-to-date with all changes to labor laws and regulations to ensure that they are in compliance and treating their workers fairly.


The increase in the Federal Minimum Wages to $16.65 per hour on April 1, 2023, is a positive step towards addressing income inequality and promoting economic growth in Canada. This increase will benefit millions of workers across the country and ensure that they receive a fair wage for their labor.

Employers will need to make adjustments to their payroll systems to ensure compliance with the new minimum wage, but paying workers a fair wage can have long-term benefits for businesses and the economy as a whole.

We hope that this article has provided useful information about the upcoming increase in the Federal Minimum Wage and its implications for workers and employers in Canada.

Historically Minimum Wages:

The federal minimum wage in Canada has increased gradually over time. In 1996, it was set at $5.50 per hour and increased to $6.85 per hour in 2003. In 2017, the government announced that it would increase the minimum wage to $15 per hour by 2021. This increase was implemented gradually over five years, with the minimum wage reaching $14.25 per hour in 2020 and $15 per hour in 2021.

Geography Minimum Wage Per Hour Next Raise
Canada (Federally regulated private sectors) $16.65 April 1, 2024
Ontario $15.50 October 1, 2023
Manitoba  $14.15 October 1, 2023
New Brunswick  $14.75 April 1, 2024 (Expected)
Nova Scotia  $14.50 October 1, 2023
Saskatchewan $13.00 October 1, 2023
Newfoundland & Labrador $14.50 October 1, 2023
Alberta  $15.00 To Be Decided (TBD)
British Columbia  $15.65 To Be Decided (TBD)
Quebec  $14.25 May 1, 2023
Nunavut $16.00 To Be Decided (TBD)
Prince Edward Island $14.50 October 1, 2023
Northwest Territories  $15.20 September 1, 2023
Yukon $16.77 April 1, 2024

While this increase in the federal minimum wage is good news for workers, it may also have implications for businesses, particularly small businesses. Employers in federally regulated industries will need to adjust their payroll to accommodate the new minimum wage, which could increase their operating costs. This may also lead to job losses or reduced hours for some workers, as employers may need to make cutbacks to compensate for the higher wages.

What is Canada’s minimum wages 2023?

$16.65 per hour is the new minimum wage effective April 1, 2023 applicable to for all federally regulated private sectors. The federal regulated private sectors include banking, postal and courier services, as well as interprovincial air, rail, road, and maritime transportation.

What is the highest minimum wages in Canada?

Yukon has the highest minimum wage at $16.77 per hour, followed by Federal minimum wage that is $16.65 per hour, and Nunavut which has the minimum wage of $16 per hour.

What is minimum wages Ontario 2023 and when will it increase?

Starting in 2022, the minimum wage rates may rise yearly on October 1st. The new rates that will take effect on October 1 will be released no later than April 1.

Currently, $15.50 is the minimum wage in Ontario.

What is the minimum wages in British Columbia?

$15.65 effective since June 1, 2022

Federally regulated private sectors

  • air transportation, including airlines, airports, aerodromes and aircraft operations
  • banks, including authorized foreign banks
  • grain elevators, feed and seed mills, feed warehouses and grain-seed cleaning plants
  • First Nations band councils and Indigenous self-governments (certain activities)
  • most federal Crown corporations, for example, Canada Post Corporation
  • port services, marine shipping, ferries, tunnels, canals, bridges and pipelines (oil and gas) that cross international or provincial borders
  • postal and courier services
  • radio and television broadcasting
  • railways that cross provincial or international borders and some short-line railways
  • road transportation services, including trucks and buses, that cross provincial or international borders
  • telecommunications, such as, telephone, Internet, telegraph and cable systems
  • uranium mining and processing and atomic energy
  • any business that is vital, essential or integral to the operation of one of the above activities
  • Federally regulated public sector (parts II and IV of the Code only):
    • the federal public service
    • Parliament (such as, the Senate, the House of Commons and the Library of Parliament)
  • Private-sector firms and municipalities in Yukon, the Northwest Territories and Nunavut (part I of the Code only)

Overall, the increase in the federal minimum wage is a positive step towards improving the standard of living for low-wage workers in Canada. However, it’s important to strike a balance between supporting workers and supporting businesses, particularly in the wake of the economic challenges brought about by the COVID-19 pandemic. The government will need to monitor the effects of the minimum wage increase and make adjustments as necessary to ensure that it benefits both workers and businesses in the long run.

Also Read: Revolutionizing AI Chatbots: Google’s Bard Launches in US and UK, Outperforming ChatGPT in Accuracy and Relevance



Leave a Comment