Minimum wage in Canada explained

Under the Constitution of Canada, the responsibility for enacting and enforcing labour laws, including the minimum wage, rests primarily with the ten Provinces of Canada. The three Territories of Canada have a similar power, delegated to them by federal legislation. Some provinces allow lower wages to be paid to liquor servers and other gratuity earners or to inexperienced employees.

The Government of Canada has the constitutional authority to set minimum wages only for employees within federal jurisdiction, such as federal public servants and workers in industries that are under federal regulatory jurisdiction, such as banks, airlines and interprovincial railways. The federal government earlier set its own minimum wage rates for workers under its jurisdiction. In 1996, however, the federal minimum wage was re-defined to be the general adult minimum wage rate of the province or territory where the work is performed. Following the 2021 budget, the Government of Canada reestablished a federal minimum wage for federally regulated industries on December 29, 2021.[1]

Demographics

In 2013, 50% of minimum wage workers were between the ages of 15 and 19; in 1997, it was 36%. 50.2% of workers in this age group were paid minimum wage in 2013, an increase from 31.5% in 1997. Statistics Canada notes that "youth, women and persons with a low level of education were the groups most likely to be paid at minimum wage."[2]

According to one study, in 2019, 62% of people on minimum wage in Quebec worked part time, and 61% were aged 15 to 24.[3]

Minimum wage levels by jurisdiction

Assuming a 40-hour workweek and 52 paid weeks per year, the annual gross employment income of an individual earning the minimum wage in Canada is between C$29,120 (in Saskatchewan) and C$39,520 (in Nunavut).[4] [5]

The following table lists the hourly minimum wages for adult workers in each province and territory of Canada. The provinces which have their minimum wages in bold allow for lower wages under circumstances which are described under the "Comments" heading.

Note: The following table can be sorted by Jurisdiction, Wage, or Effective date using the icon.

JurisdictionWage (C$/h) Effective dateCommentsIndexation Formula("CPI" refers to Statistics Canada's Consumer Price Index — All-items)
align=center 17.30April 1, 2024For workers under federal jurisdiction only. The provincial or territorial minimum wage applies if it is higher.Each April 1, based on Canada CPI for the previous calendar year.[6]
Alberta[7] align=center 15.00October 1, 2018
  • Students under age 18 (working during a school break, summer holidays, or 28 hours or less per week while school is in session): $13.00
British Columbia[8] align=center 17.40June 1, 2024Each June 1 (started in 2022), based on British Columbia CPI for the previous calendar year.[9]
Manitoba[10] align=center 15.30October 1, 2023
  • Workers in the construction industry (industrial, commercial, institutional, or heavy construction sectors): rates based on occupational classification

To be increased to $15.80 on October 1, 2024

Each October 1, based on Manitoba CPI for the previous calendar year, unless the government decrees a freeze due to economic conditions.[11] There were additional increases of $1.15 on October 1, 2022,[12] and $0.65 on April 1, 2023.[13]
align=center 15.30April 1, 2024Each April 1, based on New Brunswick CPI for the previous calendar year. The minimum wage was lifted to $12.75 on April 1, 2022, and there was an additional increase of $1.00 on October 1, 2022.[14]
align=center 15.60April 1, 2024Each April 1 (resumed in 2024), based on Canada CPI for the previous calendar year.[15] There were additional increases of $0.50 on October 1, 2020, $0.25 on April 1, 2021, $0.25 on October 1, 2021,[16] $0.50 on October 1, 2022 and $0.50 on October 1, 2023. On April 1, 2023, the minimum wage was increased by $0.80 in lieu of indexation.[17]
align=center 16.05September 1, 2023To be increased to $16.70 on September 1, 2024[18] Each September 1 (started in 2023), based on the changes in the Yellowknife CPI and in the average hourly wage in the Northwest Territories as measured by Statistics Canada for the previous calendar year.[19]
align=center 15.20April 1, 2024Each April 1, based on Canada CPI for January through November of the previous calendar year plus, starting in 2023, 1%.[20] In 2019 and 2021, an extra $0.30 was added before applying indexation. In 2020, the minimum wage was increased by $1.00 in lieu of indexation. There were early increases of $0.25 on October 1, 2022 and $0.50 on October 1, 2023.
align=center 19.00January 1, 2024
Ontario[21] align=center 16.55October 1, 2023
  • Students under age 18 (working during a school break, summer holidays, or 28 hours or less per week while school is in session): $15.60
  • Homeworkers (employees who do paid work in their own homes - includes students and supersedes the student wage): $18.20

To be increased to $17.20 on October 1, 2024 ($16.20 for students, $18.90 for homeworkers)

Each October 1 (resumed in 2020), based on Ontario CPI for the previous calendar year.[22] There was an additional increase of $0.65 on January 1, 2022.
align=center 15.40April 1, 2024To be increased to $16.00 on October 1, 2024[23]
Québec[24] align=center 15.75May 1, 2024
align=center 14.00 October 1, 2023To be increased to $15.00 on October 1, 2024Each October 1 (resuming in 2025), based on the average of the changes in the Saskatchewan CPI and in the average hourly wage in Saskatchewan as measured by Statistics Canada for the previous calendar year, subject to Cabinet approval.[25] The minimum wage was lifted to $13.00 on October 1, 2022, and there was an increase of $1.00 in lieu of indexation on October 1, 2023.[26]
align=center 17.59April 1, 2024Each April 1, based on Whitehorse CPI for the previous calendar year.[27] In 2019, an extra $0.90 was added before applying indexation. In 2020, an extra $0.75 was added after applying indexation. In 2021, an extra $1.35 was added on August 1.

See also

External links

Notes and References

  1. Web site: Federal minimum wage to rise to $15 per hour on December 29 . December 17, 2021.
  2. Web site: Galarneau. Diane. Fecteau. Eric. The ups and downs of minimum wage. June 5, 2014. Statistics Canada. July 17, 2014.
  3. Web site: Suburban. Joel Goldenberg The. Quebec right to avoid significant minimum wage hike: MEI. 2022-02-11. The Suburban Newspaper. January 26, 2022 . en.
  4. Web site: Current and Forthcoming General Minimum Wage Rates in Canada. canada.ca.
  5. Web site: Nunavut to increase minimum wage to $19/hour. gov.nu.ca.
  6. Web site: Canada Labour Code. laws-lois.justice.gc.ca. July 9, 2023 .
  7. Web site: Minimum wage. alberta.ca. February 7, 2020.
  8. Web site: Minimum wage - Province of British Columbia. June 1, 2024. www2.gov.bc.ca.
  9. Web site: BILL 2 – 2024: EMPLOYMENT STANDARDS AMENDMENT ACT, 2024. leg.bc.ca.
  10. Web site: Employment Standards - Employment Standards. gov.mb.ca.
  11. Web site: C.C.S.M. c. E110. gov.mb.ca.
  12. Web site: Minimum Wage Additional Adjustment Regulation. gov.mb.ca.
  13. Web site: C.C.S.M. c. E110. gov.mb.ca.
  14. Web site: Minimum Wage Employment Standards Act. gnb.ca.
  15. Web site: CNLR 781/96 - Labour Standards Regulations under the Labour Standards Act. www.assembly.nl.ca.
  16. Web site: Provincial Government Announces Increases to Minimum Wage. February 21, 2020. www.gov.nl.ca.
  17. Web site: Provincial Government Releases Minimum Wage Review Committee Report.
  18. Web site: GNWT announces increase to minimum wage, releases survey results. gov.nt.ca.
  19. Web site: Minimum Wage - Education, Culture and Employment. ece.gov.nt.ca.
  20. Web site: Minimum Wage Order (General) - Labour Standards Code (Nova Scotia). novascotia.ca.
  21. Web site: Minimum wage.
  22. Web site: Employment Standards Act, 2000, S.O. 2000, c. 41. January 1, 2019. ontario.ca.
  23. Web site: Two minimum wage increases expected in 2024. October 4, 2023. princeedwardisland.ca.
  24. Web site: Wages - Employees receiving tips - CNESST. www.cnesst.gouv.qc.ca.
  25. Web site: The Minimum Wage Regulations, 2014. gov.sk.ca.
  26. Web site: Minimum Wage Will Increase to $13 Per Hour This Year, $15 by 2024. saskatchewan.ca.
  27. Web site: Order-in-Council 2021/103, Employment Standards Act. 2021-07-28. 2021-08-01. laws.yukon.ca.