The federal minimum wage is set to increase by 40 cents next week, maintaining its alignment with inflation as per the annual adjustment process. Starting April 1, the wage will be raised from $17.75 to $18.15 per hour, according to an announcement from the government on Tuesday.
Each year, the wage is revised based on the previous year’s average consumer price index in Canada, which stood at 2.1 percent in 2025. The new wage is then rounded up to the nearest five-cent increment to account for this adjustment.
The federal minimum wage was introduced by the government of former Prime Minister Justin Trudeau in 2021 and pertains to employees in federally regulated sectors like transportation, banking, and telecommunications. Most Canadian workers fall under their respective provincial or territorial minimum wage rates, with these varying from $19.75 in Nunavut to $15 in Alberta.