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15 April 2025

Federal Minimum Wage Moves Up: A Closer Look At The Update

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MLT Aikins LLP

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MLT Aikins LLP is a full-service law firm of more than 300 lawyers with a deep commitment to Western Canada and an understanding of this market’s unique legal and business landscapes.
As of April 1, 2025, the minimum wage for federally regulated employees has increased from $17.30 per hour to $17.75 per hour.
Canada Employment and HR

As of April 1, 2025, the minimum wage for federally regulated employees has increased from $17.30 per hour to $17.75 per hour. The minimum wage increase rate is adjusted in accordance with Canada's Consumer Price Index (CPI) from the prior calendar year.

How this impacts employers

Federally regulated employers include those which typically operate in railways, shipping, trucking, airports and airlines, telecommunications, broadcasting, banks and First Nations Band councils and Indigenous self-governments (certain activities). The federal government provides a full list of these employers by industry.

Provincial and territorial wages versus federal wages

The Yukon will have the second highest local minimum wage at $17.94 followed by British Columbia at $17.85. However, Nunavut still holds the highest minimum wage at $19 per hour after a $3 increase in 2023 despite no raise in the last two years.

Increases per province are as follows:

  • British Columbia: $17.85 – June 1, 2025
  • Manitoba: $16 – October 1, 2025
  • Ontario: $17.60 – October 1, 2025
  • Quebec: $16.10 – May 1, 2025
  • New Brunswick: $15.65 – April 1, 2025
  • Nova Scotia: $16.50 – October 1, 2025
  • Newfoundland and Labrador: $16 – April 1, 2025
  • Yukon – April 1, 2025 – $17.94
  • Northwest Territories: CPI increase September 1, 2025

The provinces that have not announced any increases from last year's raise include Alberta, Saskatchewan, Prince Edward Island and Nunavut.

Employers in the Yukon, Nunavut and B.C. should be aware that the rate at which their employees will be paid is higher than the Federal average. Federally regulated employers must pay their employees the greater of the federal minimum wage or the local minimum wage in the province or territory where the employees are located.

Careful consideration of the varying minimum wage rate across the country is vital to ensure legal compliance and proper compensation for federally regulated employees.

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.

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