The minimum wage represents the lowest remuneration that an employee can receive for each hour of their labor. It is determined either by the governing body of a specific jurisdiction or by the federal government in the case of federally regulated businesses. Adjustments to the Canada minimum wage typically occur once or twice a year and are often linked to inflation and the Consumer Price Index (CPI).
Starting April 1, 2023, the federal minimum wage increased from $15.55 to $16.65 per hour to keep up with inflation. The minimum wage in Canada mostly adheres to rates established by individual provinces. However, the new federal minimum wage of $16.65 only affects employees in federally regulated sectors such as banking, postal services, interprovincial transportation, and federal Crown corporations.
Current Minimum Wage Across Canada
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Inforgraphic
This table lists the federal and per-province minimum wage increase caused (or not caused) by the new federal update as of April 2023. The table also shows the percentage of the Canadian minimum wage increase compared to the CPI increase.
The consumer price index (CPI) serves as a widely recognized tool for monitoring inflation's impact and the resulting changes in consumer prices. Recognizing the significance of this measure, the provincial government has committed to linking future increases in the lowest wage to the rising CPI.
As a response to this inflationary pressure, the 2023 minimum wage increase was implemented to align with the previous year's CPI.
Minimum Wage in Alberta
Currently, the Alberta minimum wage stands at $15.00 per hour. However, it's worth noting that for students under 18 years old, there is a slight variation. For the first 28 hours worked in a week, these students are entitled to a minimum wage of $13.00 per hour. Once they exceed 28 hours, their wage must be adjusted to the standard rate of $15.00 per hour.
Alberta has not changed its $15/hour minimum wage yet since 2019, while the CPI reached 4.3% in 2023, compared to 2022. So hopefully the province’s government will soon stick to the federal norm.
Any hours worked beyond 8 in a day or 44 in a week should be compensated at a rate of one and a half times the individual’s regular wage. It's important to remember that wages do not include tips or expense money.
Employees must receive at least 3 hours of minimum wage Alberta worth of pay each time they report to work, even if they are sent home before completing the full 3 hours. The maximum allowed deductions for provided meals and lodging below the lowest wage are $3.35 per consumed meal and $4.41 per day's lodging.
Minimum Wage in British Columbia
At present, the minimum wage in British Columbia stands at $15.65 per hour. As of June 1, 2023, the lowest-paid workers will receive an increase in the general British Columbia minimum wage, raising it from $15.65 to $16.75 per hour. This update applies to employees regardless of their payment structure, whether hourly, salaried, commission-based, or incentive-based.
The new increase will demonstrate a 7% growth of the minimum wage rate, thus covering the 4.3% CPI increase.
In terms of overtime compensation, there are distinct rates depending on the duration of work. For hours worked beyond 8 in a day, up to a maximum of 12 hours, the smallest daily overtime rate is one and a half times the employee's regular pay. Once an employee exceeds 12 hours, the overtime rate doubles their regular pay. It's important to note that this applies even if the weekly hours worked do not surpass 40.
Minimum Wage in Manitoba
Presently, the Manitoba minimum wage stands at $14.15 per hour. However, on October 1, 2023, there will be an increase to $15.30 per hour, as announced by the Manitoba Government. Thus, the wage rate will be increased by 13% to meet the rising 5.5% of the CPI in 2023.
When it comes to overtime, the smallest overtime rate is set at one and a half times the employee's regular rate. Overtime pay is applicable once an employee exceeds 8 hours in a single day or 40 hours in a week. While there may be some exceptions to this rule, it is essential to review the specific circumstances and regulations.
All employees are entitled to receive the minimum wage Manitoba unless they fall under specific exemptions outlined in provincial employment standards or are excluded by legislation. Examples of excluded groups include
Domestic workers who work fewer than 12 hours per week;
Individuals participating in approved provincial or federal training programs;
Election officials, enumerators, and temporary personnel appointed under The Elections Act.
Minimum Wage in New Brunswick
In New Brunswick, the current minimum wage stands at $14.75 per hour, effective as of April 1, 2023. It's worth noting that employers have the freedom to pay their staff above the established minimum wage; however, they must ensure that the hourly New Brunswick minimum wage does not fall below $14.75.
The wage was increased by 7.3% and the CPI grew by 3.5% in 2023. It's essential to understand that all employees, whether paid through salary, commission, or piecework, must receive at least the lowest wage for every hour worked.
Alongside the general minimum wage New Brunswick rate, there are specific lowest-possible wage rates applicable to certain categories of employees. This includes:
Employees engaged in government construction work, such as road, bridge, and building construction;
Counselors and program staff at residential summer camps.
Furthermore, when it comes to overtime compensation, the smallest overtime wage rate is set at one and a half times the minimum wage for any hours worked beyond 44 in a week.
Minimum Wage in Newfoundland and Labrador
The Newfoundland and Labrador minimum wage is currently set at $14.50 per hour. However, there is good news on the horizon as the minimum wage is to increase to $15.00 per hour starting from October 1, 2023.
The increase is 9.5% which completely covers the 3.5% of CPI increase. The lowest overtime wage rate is one and a half times the minimum wage for any hours worked beyond 40 in a week.
Looking ahead, the Minister is currently considering the recommendation from the Minimum Wage Review Committee to adjust the minimum wage Newfoundland and Labrador rates post-2024. The proposed approach involves annual adjustments based on inflation, along with an additional 1% increment.
Minimum Wage in Nova Scotia
In Nova Scotia, the current minimum wage is $14.50 per hour, and on October 1, 2023, it will see an increase to $15.00 per hour. The wage increase compared to 2022 is 10.3% while the CPI growth is 4.5%.
The smallest overtime rate is set at one and a half times the employee's regular Nova Scotia minimum wage for any hours worked beyond 48 in a week. It's important to note that there may be specific exceptions to this rule.
These changes reflect the government's commitment to ensure fair compensation for workers in Nova Scotia. The progressive increases in the minimum wage Nova Scotia aim to support employees and promote a more equitable working environment.
Minimum Wage in Ontario
In Ontario, the current minimum wage stands at $15.50 per hour, while the student minimum wage is set at $14.60 per hour. However, starting from October 1, 2023, there will be an increase in both rates. The general Ontario minimum wage will rise to $16.55 per hour, and the student’s lowest wage will increase to $15.60 per hour.
This law works for those students who are younger than 18 and tend to work around 28 hours per week or even less. They are allowed to work after school, during the holidays, or summer vacations.
The wage increase in Ontario this year is 10.3% which is good compensation for the 4.2% of CPI growth.
Regarding overtime compensation, the smallest possible overtime rate is one and a half times the employee's regular rate of pay for any hours worked beyond 44 in a week. Additionally, different minimum wage rules apply to specific categories of workers.
Hunting and fishing guides, as well as wilderness guides, have minimum wage Ontario calculations based on blocks of time rather than hourly rates. They are entitled to the lowest amount for working less than five consecutive hours in a day, and a different amount for working five hours or more in a day, whether or not the hours are consecutive.
Homeworkers, who perform paid work from their own homes, are also subject to their own minimum wage requirements.
Minimum Wage in Prince Edward Island
Currently, Prince Edward Island minimum wage stands at $14.50 per hour. By October 1, 2023, the minimum wage will experience an increase to $15.00 per hour. The wage increase is 9.5% compared to 2022 and the CPI increase in 2023 is 3.7%.
The smallest overtime wage rate is set at one and a half times the employee's regular wage for any hours worked beyond 48 in a week. It's advisable to review specific regulations for any potential exceptions to this rule.
This minimum wage Prince Edward Island measures are designed to support the workforce and contribute to the overall economic well-being of the province.
Minimum Wage in Quebec
In Quebec, the current minimum wage is set at $15.25 per hour, which has been in effect since May 1, 2023. It’s been a rise of 7% since 2022.
It's essential to understand that Quebec minimum wage applies to all workers, regardless of whether they are employed full-time, part-time, or are compensated on a piece or commission basis. Workers are entitled to receive at least the lowest wage and cannot be paid less than the established rate.
The smallest overtime rate is one and a half times the worker's regular rate for any hours worked beyond 40 in a week. By maintaining the minimum wage Quebec that aligns with the cost of living, the province aims to support workers and promote a more equitable working environment for all.
Minimum Wage in Saskatchewan
Currently, the Saskatchewan minimum wage is $13.00 per hour. Effective October 1, 2023, the minimum wage will increase to $14.00 per hour, thus offering a 15.3% increase in the wage rate to oppose the 5.2% CPI growth in 2023. The wage rate is expected to further increase to $15.00 per hour on October 1, 2024.
When it comes to overtime compensation, the smallest overtime rate is one and a half times the employee's regular wage for any hours worked beyond 40 in a week.
The overtime calculations differ based on the scheduled hours. Employees scheduled to work 8 hours in a day receive overtime for hours worked above 8, while those scheduled for 10 hours receive overtime for hours worked above 10.
Certain categories of employees are exempt from receiving the minimum wage Saskatchewan. This includes:
Farming, ranching, or market garden laborers;
Some care providers employed in private homes;
Temporary or sporadic babysitters;
Athletes during their athletic endeavors;
Individuals with disabilities working in educational, therapeutic, or rehabilitative programs for non-profit organizations or institutions;
Minimum Wage in Northwest Territories
In the Northwest Territories, the current minimum wage stands at $15.20 per hour, ensuring a fair baseline for employees. On September 1, 2023, the minimum wage will increase from $16.05 per hour, necessary to cover the 4.9% of CPI growth.
Overtime compensation is set at one and a half times the Northwest Territories minimum wage for any hours worked over 8 in a day or over 40 in a week.
Starting September 1, 2023, the minimum wage Northwest Territories will undergo annual adjustments using a formula based on the percentage change in the Consumer Price Index (CPI) for Yellowknife and the average hourly wage (AHW) in the NWT from the preceding calendar year.
By establishing a predictable annual adjustment on September 1 of each year, businesses can better plan and absorb the impact of incremental increases. It's important to note that most years will see an increase in the minimum wage; however, if the CPI or AHW experiences a negative change resulting in a decrease, the lowest wage rate will remain the same to maintain stability.
Minimum Wage in Nunavut
In Nunavut, the minimum wage currently stands at $16.00 per hour, ensuring fair compensation for all employees across the territory. There is no wage growth planned in 2023 to cover the 3.1% CPI increase.
The smallest overtime rate, set at one and a half times the regular wage, applies to any hours worked beyond 8 in a day or 40 in a week.
One notable aspect is that there are no age restrictions on the Nunavut minimum wage. This means that it applies universally, regardless of whether the worker is a student or of a minority age.
Furthermore, the minimum wage Nunavut is subject to an annual review, which takes place on April 1. This ensures that the minimum wage remains in line with economic conditions and the cost of living, guaranteeing fair compensation for workers throughout the territory.
Minimum Wage in Yukon
Effective April 1, 2023, the Yukon minimum wage will experience an increase from $15.70 to $16.77 per hour, which is an impressive 6.8% growth compared to 2022. This adjustment is based on the 2023 CPI which reflects a 5.8 percent increase in the cost of living.
To ensure that the minimum wage Yukon keeps pace with the changing economic landscape, adjustments are made on April 1 of each year, relative to the CPI.
Overtime compensation is set at one and a half times the regular rate for any hours worked beyond 8 in a day or 40 in a week.
Why Is There a Minimum Wage?
To ensure fair compensation, employers are required to pay their employees at least the federal minimum wage Canada. However, if the minimum wage set by the province or territory where the employee typically works surpasses the federal standard, the employer must adhere to the higher rate.
What is minimum wage in Canada? Historically, the minimum wage has served as a safeguard against exploitation for non-unionized workers, particularly women and children. Simultaneously, it has acted as an incentive to work, addressing inequality and enhancing living standards.
Today, the minimum wage strives to keep pace with inflation, average wage rates, and other economic factors, ensuring its relevance and effectiveness.
FAQ
Starting from April 1, 2023, the official minimum wage rate in Canada according to federal law is $16.65, a 7% increase compared to April 2022.
The highest wage rate in Canada is seen in British Columbia, Manitoba, Ontario, Nunavut, and Yukon. These provinces offer a minimum wage rate of stably above $15,5.
In the provinces of Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and Saskatchewan the minimum wage rates are the lowest, equal to $15 and lower.
Several provinces have followed the federal law recommendations on the minimum wage rate in 2023 and increased the wage from 7% (the lowest percentage) to 15% (the highest percentage) to meet the inflation rates.
According to data from 2023, the minimum amount of money to afford to live in Canada is somewhere around $1,700 per month, but this is not comfortable living. To be able to afford basic comforts and save some money, as well, it is recommended to have at least $2,700 per month. Earning minimum wage allows an individual to make around $34,600 per year, which is around $2,600 per month, which should be pretty enough to live in Canada comfortably.
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