Canada Minimum Wage Hike 2025 – New Federal and Provincial Rates Explained

Canadians have been grappling with the relentless rise in housing, food, and energy costs. In response, the federal government and provincial authorities have rolled out minimum wage increases in 2025, marking one of the most significant updates in recent years. Starting April 1, 2025, the federal minimum wage rose by 2.4% to $17.75 per hour, while provinces and territories across the country either followed with their own hikes or announced upcoming changes later in the year.

These wage adjustments aim to ensure that workers in both federally regulated industries and local businesses are better protected against inflation. But the ripple effects go beyond individual paycheques — the hikes impact businesses, local economies, and the broader Canadian labour market.

Federal Minimum Wage Update for 2025

The federal minimum wage applies to employees working in federally regulated sectors, such as:

• Banking
• Postal services
• Telecommunications
• Interprovincial transportation

Effective April 1, 2025, the federal rate is now $17.75 per hour, up from \$17.35 in 2024. This represents a 2.4% increase, designed to keep pace with inflation and protect the purchasing power of workers.

This rate will remain in place until March 31, 2026, after which the government will conduct another review. Employers in federally regulated industries are legally required to pay workers at least this amount, though many companies in competitive sectors already pay above the baseline.

Why Canada Has Multiple Wage Rates

Unlike some countries with a single nationwide minimum wage, Canada operates a dual wage system:

• Federal minimum wage: Covers federally regulated industries.
• Provincial and territorial minimum wages: Apply to all other sectors, set independently by each jurisdiction.

This means that depending on where you live and work, your minimum wage could be higher or lower than the federal baseline.

Provincial Wage Hikes in 2025

Across Canada, provinces and territories are updating their rates at different times in 2025. Some adjustments have already taken effect, while others are scheduled for the latter half of the year.

Increases Effective Between April and September 2025

• Newfoundland & Labrador: $16.25/hour (effective April 1)
• New Brunswick: $15.75/hour (effective April 1); overtime rate set at \$23.62/hour
• Yukon: $18.10/hour (effective April 1)
• Nova Scotia: $15.85/hour (effective April 1), with a second increase to \$16.60/hour scheduled for October
• Quebec: $16.25/hour (effective May 1)
• British Columbia: $18.00/hour (effective June 1), with special rates applying to liquor servers, live-in camp leaders, and online platform workers
• Northwest Territories: $17.10/hour (effective September 1, up from $16.80)
• Nunavut: $19.90/hour (effective September 1, up from $19.20)

Increases Coming in October 2025

• Manitoba: $16.10/hour (up from $15.85)
• Ontario: $17.65/hour (up from $17.25)
• Student minimum wage: $16.65/hour
• Homeworkers: $19.50/hour
• Saskatchewan: $15.50/hour (up from $15.20)
• Prince Edward Island: $16.60/hour (rising again to $17.10/hour in April 2026)

Provinces Keeping Current Rates

• Alberta: $15.20/hour general minimum wage remains unchanged
• Students under 18: $13.50/hour
• Salespersons: $610/week
• Domestic employees: $2,900/month

Regional Comparisons

The new minimum wage figures highlight just how diverse Canada’s labour market is.

• Highest wage: Nunavut now leads the country at $19.90/hour, reflecting the extremely high cost of living in the North.
• Lowest wage: Alberta remains at $15.20/hour, the only province not increasing its rate in 2025.
• Notable increases: British Columbia’s $18/hour is among the most significant hikes this year, offering relief in one of Canada’s most expensive provinces.

Impact on Workers

For employees, wage increases mean:

• Better protection against inflation: Workers earning close to minimum wage can better manage essentials like rent, groceries, and transportation.
• Improved living standards: Higher wages are especially important for young workers, part-timers, and those in service industries.
• Fairness across regions: Provinces with higher living costs are providing stronger wage floors, helping to balance disparities across the country.

However, the increases vary widely by province, meaning some workers will benefit more than others depending on where they live.

Impact on Employers

Businesses are divided in their response.

• Supportive view: Many recognize the need for wages to reflect the cost of living, which helps retain workers in competitive industries.
• Concerns raised: Small and medium-sized businesses, particularly in retail and hospitality, worry about the strain of higher payroll costs. Some may pass costs onto consumers through higher prices.

Labour economists argue that while there may be short-term challenges, wage hikes often stimulate local economies as workers spend more on goods and services.

Why Minimum Wage Reviews Matter

Annual reviews of minimum wage rates are now the norm across Canada. Provinces like Nova Scotia and Prince Edward Island have already scheduled further increases for 2026, ensuring wages don’t stagnate.

By tying increases to inflation or cost-of-living indices, governments aim to provide stability for workers while giving businesses predictability.

What Canadians Should Do Now

• Workers: Stay informed about your province’s current minimum wage and check whether you’re being paid correctly. If you work in a federally regulated sector, confirm whether the federal or provincial rate applies — whichever is higher will apply.
• Employers: Review payroll systems to ensure compliance with updated rates and prepare for future increases in 2026.
• Students and part-time workers: Be aware of special wage categories, such as student and homeworker rates, which may differ from the general minimum wage.

5 FAQs

Q1: What is the new federal minimum wage in 2025?
The federal minimum wage is $17.75 per hour as of April 1, 2025, a 2.4% increase from the previous year.

Q2: Which province has the highest minimum wage in 2025?
Nunavut leads with $19.90/hour, reflecting its higher living costs.

Q3: Are all provinces raising their minimum wage in 2025?
No. Alberta has kept its general rate at $15.20/hour, though other provinces have announced increases.

Q4: Do student and homeworker wages also change?
Yes. Ontario, for example, has set student wages at $16.65/hour and homeworker wages at $19.50/hour from October 2025.

Q5: How often are minimum wages reviewed in Canada?
Most provinces review them annually, adjusting based on inflation and cost-of-living measures.