As of 2025, millions of Canadian workers are receiving a boost in pay thanks to minimum wage increases across both federal and provincial levels. These wage hikes are part of an effort to help workers keep up with inflation and the rising cost of living.
Whether you’re in retail, hospitality, federally regulated sectors, or other industries, this guide covers everything you need to know about how much you’re entitled to earn.
Federal Minimum Wage Raised to $17.75 in 2025
Effective April 1, 2025, the federal minimum wage increased to $17.75 per hour, up from $17.30 in 2024. This adjustment reflects inflation and ensures that workers in federally regulated industries are earning a fair wage.
This applies to workers in sectors such as:
- Airlines
- Banking
- Rail and transportation
- Telecommunications
- Postal and courier services
If the provincial minimum wage is higher than the federal rate, workers will receive the higher of the two.
Provincial and Territorial Minimum Wage Breakdown (2025)
Here’s a province-by-province breakdown of current rates and scheduled increases:
Province/Territory | Current Rate | Next Increase | Notes |
---|---|---|---|
Alberta | $15.00 | — | No increase since 2018 |
British Columbia | $17.85 | June 1, 2026 | Increased from $17.40 in June 2025 |
Manitoba | $15.80 | Oct 1, 2025 → $16.00 | CPI-adjusted |
New Brunswick | $15.65 | Annual CPI-linked | Posted as of April 1, 2025 |
Newfoundland & Labrador | $16.00 | Annual CPI-linked | In effect from April 1, 2025 |
Northwest Territories | $16.70 | Sep 1, 2025 (expected) | Reviewed annually |
Nova Scotia | $15.70 | Oct 1, 2025 → $16.50 | CPI + 1% adjustment |
Nunavut | $19.00 | — | Highest in Canada |
Ontario | $17.20 | Oct 1, 2025 → $17.60 | Based on CPI formula |
Prince Edward Island (PEI) | $16.00 | Oct 1, 2025 → $16.50 | Step toward $17.00 by April 2026 |
Quebec | $16.10 | May 1, 2026 | Rose from $15.75 in May 2025 |
Saskatchewan | $15.00 | Oct 1, 2025 (expected) | CPI-based increases likely |
Yukon | $17.94 | April 1, 2026 | Reviewed annually for CPI inflation |
What It Means for Workers in 2025
The wage increases are more than symbolic—they’re essential. Here’s how they impact you:
- Higher earnings in provinces like Nunavut, Yukon, British Columbia, and Ontario, where the minimum wages are among the highest in the country.
- More predictability in income for workers in provinces with annual CPI-linked adjustments, such as Nova Scotia and Manitoba.
- Improved quality of life through better financial stability amid rising costs of groceries, housing, and utilities.
- Clearer federal protections, ensuring workers in regulated industries earn no less than $17.75/hr, even if their province’s minimum is lower.
Some provinces still have lower rates for students or tipped workers. For example:
- Ontario’s student minimum wage: $16.20/hr
- Quebec’s tipped worker wage: $12.90/hr
Why These Changes Matter Now
- Cost of Living: As food, rent, and fuel costs rise, increased wages help families maintain purchasing power.
- Worker Retention: Higher minimum wages attract and retain workers in industries facing shortages.
- Economic Recovery: As the country moves forward post-pandemic, stronger wages help stimulate local economies.
- Policy Momentum: Several provinces, like PEI, have multi-year wage plans aiming for $17/hr or more by 2026.
What Employers Should Do
Employers are responsible for complying with all applicable wage regulations. They must:
- Update payroll systems to reflect current rates as of April 1, June 1, or October 1, depending on the jurisdiction.
- Use the correct rate—whichever is higher, federal or provincial.
- Be aware of exceptions such as students, liquor servers, or domestic/home workers.
- Monitor future CPI updates, as some provinces raise wages without direct announcements.
What Employees Should Know
- Check your classification: Determine if you are a general worker, student, or tipped employee.
- Know your rights: You are legally entitled to the minimum wage for your category.
- Track your pay: Ensure your wage reflects any scheduled increases.
- Speak up: If you believe you’re being underpaid, report it to your provincial labour standards office.
Looking Ahead: Key Wage Milestones in 2025–2026
- October 1, 2025: Increases in Ontario, Manitoba, Nova Scotia, PEI, and possibly Saskatchewan and NWT.
- April 1, 2026: Next federal increase, based on national inflation.
- May–June 2026: Scheduled rises for Quebec and British Columbia.
Workers and employers alike should stay alert for these updates.
With the federal minimum wage rising to $17.75 and provinces like Nunavut, Yukon, and British Columbia leading the way, 2025 marks a meaningful year for Canadian workers.
These updates support fairer compensation, greater financial security, and resilience against inflation.
Whether you’re federally regulated or provincially employed, knowing your current wage rate, watching for upcoming changes, and ensuring compliance can help you make the most of your earnings. These changes represent progress—and for millions of Canadians, a more livable wage.
FAQs
Do I get the federal or provincial minimum wage?
You receive whichever is higher. If your province pays more than the federal rate, your employer must honour that higher amount.
Are students and tipped workers paid less?
In some provinces, yes. Special categories apply, but the amounts and rules vary by region.
Will these wage increases continue?
Yes. Many provinces have committed to annual CPI-based adjustments, meaning minimum wages will increase regularly.