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‘Everyone’s feeling the pinch of inflation’: Ottawa hiking federal minimum wage to $17.30 per hour

The federal minimum wage is rising 3.9 per cent on April 1, from $16.65 to $17.30 per hour, Ottawa has announced.

It said the move, designed to keep up with the cost of living, reflects the 3.9 per cent increase in Canada’s annual Consumer Price Index for 2023 and is aligned with inflation.

“Everyone’s feeling the pinch of inflation,” said Seamus O’Regan Jr. “So, wages must keep up with the cost of living.”

About 30,000 employees in the federally regulated private sector will benefit from this raise, Employment and Social Development Canada said in a press release.

“Employers are required to adjust their payroll information accordingly to ensure that all employees, including interns, receive the correct hourly wage starting April 1, 2024,” it said. “Should the provincial or territorial minimum wage rate exceed the federal rate, employers must pay the higher of the two.”

Ottawa introduced the federal minimum wage in 2021. It is adjusted annually based on Canada’s annual average Consumer Price Index from the previous calendar year. In 2022, the federal minimum wage was increased to $15.55, and in 2023, it was increased to $16.65.