Rise of The Canadian Federal Minimum Wage to $16.65
On April 1, the federal minimum wage in Canada is rising to $16.65 per hour.
This is a major change for employers and employees alike, so it’s important that both groups are aware of the details and are prepared for the shift. The new minimum wage will affect nearly 1 million Canadian workers in all provinces and territories and could have a ripple effect throughout the labor market.
It’s important to know how this increase could impact you as an individual or business, particularly if you employ low-wage workers or are looking for employment at or near the minimum wage. In this article, we’ll look at what you need to know about the upcoming change so you can prepare yourself and your employees.
Overview of Canada's New Federal Minimum Wage Increase
Are you a Canadian business owner or employee? April 1st of this year marks the federal minimum wage increase to $16.65 per hour across Canada. This represents an increase of 34 cents per hour, or 2%, relative to the wage that has been in effect since October 1, 2020.
By increasing the minimum wage, the Government of Canada hopes to help ensure that all Canadians are able to benefit from economic growth and share in its prosperity. This nationwide increase is applicable to any employee earning less than $16.65/hour and working within a federally-regulated sector or industry in Canada, such as banking and telecommunications.
The overall aim of this minimum wage raise is twofold: promote good jobs for all Canadians by providing more people with a fair income and help keep up with rising prices for goods and services across the country. With this new delayed implementation on April 1st, now is the perfect time to make sure your business is prepared for the upcoming change.
Exactly who will be affected by this change?
The raising of the federal minimum wage to $16.65 per hour on April 1 will impact many workers across Canada. This change applies to federally regulated private sectors like all banks, postal and courier services, as well as interprovincial air, rail, road, and marine transportation.
Ultimately, this increase in the federal minimum wage will benefit those workers who are currently earning less than $16.65 per hour and could potentially help stimulate the economy. Raising the minimum wage does not diminish private-sector employment and instead serves to increase the earnings and family income of most low-wage workers. Additionally, higher wages can also reduce turnover and improve the productivity of a given firm’s workforce.
What changes needs to be implemented as an employer?
Federally regulated private-sector employers need to make sure they are prepared for April 1 and the increase in Canada’s minimum wage to $16.65 per hour. To ensure payroll information is updated correctly, employers must be aware of the new rate and apply it accordingly.
If your province or territory has a higher minimum wage rate than the federal one, your employer must apply that rate instead. It is important to check with your specific province or territory about their current minimum wage requirements.