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Federal Minimum Wage To Increase April 1, 2025

The federal government has announced that, effective April 1, 2025, the federal minimum wage will be increased from $17.30 to $17.75 per hour, representing a 2.4% increase.

The increase applies to the federally regulated private sectors, including banks, postal and courier services, telecommunications, and interprovincial air, rail, road and marine transportation.

The federal minimum wage is adjusted on an annual basis based on Canada's annual average Consumer Price Index (CPI) from the prior calendar year. This April 1 adjustment reflects the 2.4% increase in Canada's annual average CPI for 2024.

As stated in the announcement, employers must ensure that their payroll information is adjusted accordingly so all employees (including interns) receive the correct hourly wage as of April 1, 2025. Note that if the applicable provincial or territorial minimum wage rate exceeds the federal rate, federal employers must pay the higher of the two.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Author: Danika L. Winkel

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