As of April 1, 2024, Employment and Social Development Canada (ESDC) has announced an increase in the federal minimum wage to $17.30 per hour. This adjustment is a big increase from the previous year’s raise, which saw the minimum wage rise from $15.55 to $16.65 per hour.
The federal government decided to increase the minimum wage to address the rising cost of living and inflationary pressures affecting Canadians. The new wage rate of $17.30 per hour represents a meaningful increase compared to the previous rate of $16.65 per hour. It aims to provide relief to workers in federally regulated sectors who earn minimum wage.
Canada Wage Increase Impact on Workers
It is estimated that employees earning the federal minimum wage will receive an extra $5.20 for an eight-hour workday or $26 per week, which will provide some relief to workers experiencing economic challenges and rising living costs. This increase is expected to have a positive impact on workers across different sectors, such as banking, telecommunications, and transportation.
The minimum wage adjustment is linked to the Consumer Price Index (CPI), which tracks the average price change consumers pay for goods and services over time. In 2023, the CPI saw an annual increase of 3.9%, following a 6.8% increase in 2022, which was the highest in 40 years. This means that the minimum wage will continue to be adjusted in line with changes in the CPI.
Provincial Wage Adjustments
Apart from the federal minimum wage, several provinces have also increased it. The minimum wage rate varies from province to province, ranging from $15.30 in New Brunswick to $17.59 in Yukon. However, suppose a province or territory’s minimum wage is higher than the federal rate. In that case, employers must pay the higher provincial rate, ensuring that workers receive the best possible wage.
However, not all Canadian workers will see their wages increase in 2024. For example, Alberta has not raised its minimum wage since June 2019, which means it has gone the longest period without an increase compared to other provinces and territories. Meanwhile, the Northwest Territories, Nunavut, Ontario, and Quebec have not yet announced any wage increases for this year. This means that workers in these regions may have to wait longer to see any changes to their pay.
According to Samfiru Tumarkin LLP, if the minimum wage set by a province or territory surpasses the federal minimum, employers under federal jurisdiction within that province must comply with the higher rate.
For additional insights on the latest wage adjustments, individuals are encouraged to refer to the relevant government page or reach out to the Labour Program at 1-800-641-4049.
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