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Federal minimum wage rising to $16.65 per hour on April 1

The federal minimum wage is rising by 7.1 per cent on April 1, 2023 — from $15.55 to $16.65.

The wage rate applies to federally-regulated employers. If a provincial or territorial minimum wage rate where the worker is employed is higher, employers are required to pay the higher rate. The increase is based on the Consumer Price Index, which rose 6.8 per cent in 2022.

“The cost of living is rising, so we’re making sure that wages keep going up too,” said Seamus O’Regan Jr., the federal Minister of Labour. “We’re looking after workers, because that’s how you grow the economy and create more prosperity for everyone.”

The federal minimum wage applies to the federally regulated private sectors, including banks, postal and courier services, and interprovincial air, rail, road, and marine transportation.

Quick facts

• Part III (Labour Standards) of the Canada Labour Code was amended to establish a federal minimum wage of $15 per hour rising with inflation. The measure came into force on December 29, 2021. Every April 1, the federal minimum wage is adjusted based on Canada’s Consumer Price Index (previous calendar year). The first adjustment took place on April 1, 2022.
• This change applies to workers and interns in federally regulated private sectors, including banks, postal and courier services, and interprovincial air, rail, road and marine transportation. The federal minimum wage directly benefits an estimated 26,000 workers in these sectors who earn less than the current rate.
• In recent years, the Government has been working on many fronts to help ensure every Canadian has a fair and equal chance to reach their full potential and have decent working conditions. Measures taken include:
  • the coming into force of the Pay Equity Act and Pay Equity Regulations so that workers receive equal pay for work of equal value;
  • the ongoing development of a right-to-disconnect policy to help improve work-life balance by setting clear expectations around the use of electronic devices after the work day; and
  • a commitment to advancing amendments to the Canada Labour Code that would:
    • • include mental health as a specific element of occupational health and safety; and
      • entitle gig workers (including those employed by digital platforms) to labour protections.

    Source: Employment and Social Development Canada