Canadian federal minimum wage increase 2023

May 16, 2023

Over the past 50 years, Canada has developed a reputation for accepting immigrants and acknowledging diversity. Over a quarter of Canadians are foreign-born, making it one of the highest ratios among industrialized Western countries.


It appears that the country is becoming a more attractive immigration destination, thanks to the increase in the minimum wage by the federal government. Recently, the minimum wage in Canada has increased by 7%. The Canadian government increased the pay per hour to $16.65 to maintain the good lifestyle of its people, including existing and new immigrants.


According to Employment and Social Development Canada, starting on April 1, 2023, the minimum hourly wage will rise to $16.65. Following this, the Consumer Price Index also increased by 6.8% in 2022.


The Canadian forces have increased the minimum wage to counter the calamity worldwide, resulting slowdown in countries with high inflation and increased living costs. Seamus O’Regan Jr, Canada’s Minister of Labour, announced that the Canadian forces would receive a 3.5% pay increase in 2023 in response to the rising costs of living, which will ultimately benefit our devoted workforce and lead to greater prosperity.


Key highlights of this new regime:

  • The minimum wage in Canada has increased by 7% to $1.10.
  • The adjustment was made to reflect the ongoing rise in living expenses.
  • The ESDC estimates that the minimum hourly wage will increase to $16.65 as of April 1, 2023.
  • The Consumer Price Index increased by 6.8% in 2022 as well.


What is the federal minimum wage in Canada in 2023?

The minimum wage is the least remuneration to be paid to wage earners to promote fair employment practices and refrain from exploitation of workers. In Canada, the federal minimum wage is covered by Part III (Labour Standards) of the Canada Labour Code. This applies to anyone working for federally regulated businesses, federal Crown companies, and some Indigenous government functions on First Nations reservations.

Which federally regulated jobs will see their minimum wage increase in Canada in 2023?

The minimum wage is regulated by territorial and provincial governments, resulting in different minimum wages that are paid in each province.

Following are the regulated jobs that will see minimum wages increase:

  • Airlines, airports, aerodromes, and aircraft operations all fall under the umbrella of air transportation.
  • Banks, including vetted international banks.
  • Grain elevators, grain-seed washing facilities, feed and grain mills and feed warehouses.
  • Indigenous self-government and indigenous band councils (certain activities).
  • The vast majority of government Crown enterprises, like Canada Post Corporation.
  • Port services, maritime transportation, ferry services, tunnels and passageways, waterways, bridges and pipelines (for gas and oil) that transcend international or provincial boundaries.
  • Courier and postal services.
  • Transmitting on radio and TV.
  • Short-line railroads, as well as railroads that span regional or international boundaries
  • Services for international or provincial border crossings in the road transport industry, including trucks and buses.
  • Telephone, Internet, telegraph, and cable system telecommunications.
  • Nuclear energy and the mining and processing of uranium.
  • Any company that is fundamental to the operation of one of the aforementioned activities.

What will the minimum wage be in 2023 (with revised or upcoming increments)?

Let’s go through the existing minimum wage in Canada 2023 before the new hike is implemented.

State/Province/Territory Minumum wages after April 1, 2023
British Columbia $15.65
Alberta $15.00
Saskatchewan* $13.00(Increase to $14.00 in Oct 2023 and $15 in Oct 2024)
Manitoba $13.50(Increase to $14.15 in Oct 2023)
Ontario $15.50 and $14.60(for students)
Quebec $15.25(effective May 2023)
Newfoundland and Labrador $13.70
New Brunswick $14.75
Prince Edward Island $14.50(Increase to $15 from Oct 2023)
Nova Scotia $14.50
Northwest Territories $15.20
Nunavut $16.00
Yukon $16.65


Furthermore, the wages for students under 18 years who work 28 hours/week will increase to 15.50 per hour. For homeworkers, the wages will increase to 18.20 hours/week, and fishermen, hunters, and wildernesses will be entitled to 82.85 hours/week if they work less than five consecutive days and 165.75 hours per day if they work more than five consecutive days.


Wrapping up!

This minimum wage increase has contributed to maintaining a work-life balance among its workers, benefits gig workers, improves earning potential for newcomers, helps them live comfortably during their work tenures, and, most importantly, reduces income inequality.


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