The federal minimum wage is set to increase by 40 cents next week, maintaining pace with inflation as planned. According to a government announcement on Tuesday, the wage will climb from $17.75 to $18.15 per hour starting April 1.
Each year, the wage is adjusted to align with the previous calendar year’s annual average consumer price index in Canada, which stood at 2.1 percent in 2025. The updated wage is then rounded up to the nearest five-cent increment following this calculation.
In 2021, the federal minimum wage was implemented by the administration of former Prime Minister Justin Trudeau. This wage applies to employees in federally regulated sectors such as transportation, banking, and telecommunications.
While most Canadian workers fall under their respective provincial or territorial minimum wage rates, which vary between provinces, the range spans from a high of $19.75 in Nunavut to a low of $15 in Alberta.