The Employment and Social Development Canada (ESDC) announced that starting April 1, 2024, the federal minimum wage will be $17.30 per hour. This is a big jump from last year’s increase when the minimum wage went from $15.55 to $16.65 per hour.
The government decided to raise the minimum wage because of inflation and the higher cost of living in Canada. Compared to the old rate of $16.65 per hour, the new rate of $17.30 per hour is a big increase. The aim is to assist those who earn minimum wage in industries regulated by the federal government.
Canada Minimum Wage Increase 2024
| Topic of Article | Canada Minimum Hourly Wage Increase 2024 |
| Concerned Country | Canada |
| Current Federal Minimum Wage | $16.50 Per hour |
| The new Rate Maybe | $17.30 per hour |
| Increase Implementation From | Varies according to the province |
| Detailed Information | Check Here |
Currently, in Canada, the minimum wage is $16.65 per hour. The government sets this federal minimum wage, and all companies must pay their employees at least this much.
Starting from April 1, 2024, the new minimum wage in Canada will come into effect. Before this, it was $15.55 per hour. If you want more information about the minimum wage in Canada, you can check out the Province-Wise Minimum Wages in Canada below.
Canada’s Different Province Minimum Wages
Each province decides its minimum wage rate. Some provinces have changed their rates, while others haven’t. To know the minimum wage for regular workers, you can visit the official websites of the provincial governments.
These rates are for one hour of work. By October 1, 2024, the minimum wage in Saskatchewan will go up to $15.
| Province Name | Minimum Wage/Per Hour |
|---|---|
| Yukon | 16.77 dollars |
| Saskatchewan | 14 dollars |
| Alberta | 15 dollars |
| Manitoba | 15.30 dollars |
| British Columbia | 16.75 dollars |
| Quebec | 15.25 dollars |
| Prince Edward Island | 15 dollars |
| Nunavut | 16 dollars |
| Ontario | 16.55 dollars |
| Northwest Territories | 16.05 dollars |
| New Brunswick | 14.75 dollars |
| Newfoundland and Labrador | 15 dollars |
| Nova Scotia | 15 dollars |
How’s Canada Wage Increase Helpful for Workers?
The federal minimum wage hike is expected to give workers an extra $5.20 for an eight-hour day, or $26 a week. This will help ease some of the financial pressure and rising living costs they’re dealing with. Workers in various sectors like banking, telecommunications, and transportation stand to benefit from this raise.
The increase in the Consumer Price Index (CPI), which tracks how prices for goods and services change over time, is linked to the minimum wage hike. In 2023, the CPI went up by 3.9% annually, the biggest increase in forty years, following a 6.8% rise in 2022. This means that any changes in the CPI will likely impact the minimum wage going forward.
Canada Minimum Wage for International Students in 2024
Minimum wage rates also affect international students who come to study at Canadian universities. Starting from January 1, 2024, the financial requirements for study permit applicants will go up. To meet the cost-of-living standard, applicants must demonstrate they have $20,635 available. This change, called the GIC Increase, is set by the Government of Canada.
Moreover, from now until April 30, 2024, international students won’t have to stick to the usual 20-hour work week limit. During this period, they can work and will be paid according to the 2024 Canada Minimum Wage, which is $16.50 per hour.
FAQs on Canada’s Minimum Wage Increase 2024
What is the new federal minimum wage in Canada?
Starting April 1, 2024, the federal minimum wage in Canada will be $17.30 per hour, a significant increase from the previous rate of $16.65 per hour.
Why did the government decide to raise the minimum wage?
The decision to increase the minimum wage was driven by inflation and the higher cost of living in Canada. The aim is to assist workers earning minimum wage in industries regulated by the federal government.
How does the minimum wage vary across different provinces in Canada?
Each province sets its own minimum wage rate, with some provinces having already implemented changes. To know the minimum wage for regular workers in each province, individuals can visit the official websites of provincial governments.
How will the minimum wage increase benefit workers?
The federal minimum wage hike is expected to provide workers with an additional $5.20 for an eight-hour day, or $26 a week. This increase will help alleviate some financial pressure caused by rising living costs.
How does the minimum wage increase affect international students in Canada?
Starting from January 1, 2024, international students must meet the increased financial requirement of $20,635 to cover the cost of living. Additionally, until April 30, 2024, international students can work beyond the usual 20-hour limit per week and will be paid according to the 2024 Canada Minimum Wage of $16.50 per hour.