Canada Increases Federal Minimum Wage from $15.55 to $16.65 / hour
As of April 1, 2023, the federal minimum wage in Canada has been increased from $15.55 to $16.65 per hour.
As of April 1, 2023, the federal minimum wage in Canada has been increased from $15.55 to $16.65 per hour. The move comes as part of the government’s effort to “keep pace with inflation” and to ensure that workers’ wages are in line with the rising cost of living.
According to Canada’s Minister of Labour, Seamus O’Regan Jr., the increase in the federal minimum wage is a way of looking after workers and promoting economic growth. “We’re making sure that wages keep going up too,” he says. “That’s how you grow the economy and create more prosperity for everyone.”
The announcement comes after the Consumer Price Index rose by 6.8% in 2022, highlighting the need for a wage increase to help workers keep up with the rising cost of living. Currently, around 26,000 working Canadians earn less than the previous federal minimum wage of $15.55 per hour.
Workers and interns employed in federally regulated private sectors, such as banks, postal and courier services, and interprovincial air, rail, road, and marine transportation, are subject to the federal minimum wage. Employers in these sectors must adjust their payroll information to ensure that workers are paid correctly as of April 1.
Employers are required to apply the higher provincial or territorial minimum wage rate if it exceeds the federal minimum wage. As a result, some workers in certain provinces may already be earning more than the newly increased federal minimum wage.
Overall, this increase in the federal minimum wage is a positive step towards ensuring that Canadian workers are fairly compensated for their hard work, and it demonstrates the government’s commitment to promoting economic growth and prosperity for all.
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