A new minimum wage will be introduced in Canada and five Canadian provinces in 2024. Starting from April 1, 2024, the new minimum wage in Canada will go up from $16.65 to $17.30 per hour.
This is happening to make sure that people’s wages keep up with the increasing cost of living. As a result, the increase of 65 cents will benefit approximately 30,000 Canadian workers employed in federally regulated sectors.
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What Is Minimum Wage?
The minimum wage in Canada is the lowest amount that employers are legally required to pay their workers. The federal government of Canada sets the minimum wage for federal government agencies across all provinces.
Provincial governments determine their own minimum wages for employees of provincial governments and private businesses within their provinces.
Let’s explore the new minimum wages expected to take effect in five Canadian provinces in or shortly after the first quarter of 2024.
New Minimum Wage in Canada for Federally Regulated Sectors
The minimum wage for federally regulated private sectors will be updated on April 1, 2024, based on Canada’s Consumer Price Index (CPI) for 2023.
Starting April 1, 2024, All federally regulated private sectors in Canada, like those in banking, postal services, and transportation, will have a higher minimum wage.
Moreover, workers in these industries get paid more if the minimum wage in their province or territory is greater than the federal minimum wage.
The current federal minimum wage is $16.65 per hour, revised on April 1, 2023, from $15.55 per hour. The next minimum wage increase, expected around April 1, 2024, is estimated to be approximately $17.17 per hour, based on a 3.1% CPI reported by Statistics Canada in October 2023.
The minimum wage went up by $1.10 in April 2023, but it only went up by 65 cents in 2024. Also, starting from April 1, 2024, five provinces in Canada will have a new minimum wage.
New Minimum Wage in Nunavut
On January 1, 2024, the minimum wage in Nunavut increased from $16.00 to $19.00 per hour, making it the highest minimum wage in Canada.
The last time Nunavut raised its minimum wage was from $13.00 to $16.00 per hour on April 1, 2020.
New Minimum Wage in Nova Scotia
In 2024, Nova Scotians can expect a 4.1% increase in the minimum wage, aligning with the current inflation rate.
Nova Scotia reviews its minimum wage every April 1, considering the inflation rate plus an additional 1%. The expected wage increase is from $15 per hour to around $15.60 per hour, effective April 1, 2024.
New Minimum Wage In Prince Edward Island
Prince Edward Island is set to raise its minimum wage to $15.40 per hour on April 1, 2024, following an increase from $14.50 to $15 per hour on October 1, 2023.
Additionally, it will further rise to $16 per hour on October 1, 2024.
New Minimum Wage In Yukon
Yukon will increase its minimum wage on April 1, 2024, in alignment with the annual inflation rate.
Presently, Yukon’s minimum wage is $16.77 per hour and is expected to rise to over $17.62 per hour on April 1, 2024.
Minimum Wage for New Brunswick
New Brunswick plans to adjust its minimum wage in 2024 based on the Consumer Price Index (CPI), following a similar practice from 2023.
Currently, New Brunswick’s minimum wage is $14.75 per hour, raised from $13.75 per hour on April 1, 2023. The new minimum wage is expected to reach nearly $15 per hour on April 1, 2024.
New Minimum Wage Increase In Ontario In 2024
Ontario will announce the new minimum wage amount on or before April 1, 2024. However, this change will only take effect on October 1, 2024.
On November 16, 2023, Ontario’s Education Minister Stephen Lecce released his child-care workforce strategy Thursday and announced an increase in the minimum hourly wage for Registered Early Childhood Educators (RECEs). The increase in minimum wage is $3.86 per hour, raising the wage from $20 to $23.8.
New Minimum Wage Increase In British Columbia
The government of British Columbia is making big changes to make things better for people who work in gig jobs, like driving for ride-hailing or delivering food.
These workers will have a minimum wage that’s 120% of the regular minimum wage. Currently, the minimum wage in British Columbia is $16.75/hour. After the new rules, gig workers will be guaranteed a minimum of $20.1/hour.
This includes people working for Uber Eats, Instacart, SkipTheDishes, and similar businesses. It also covers drivers for Lyft, Coastal Rides, Whistle, and Uber.
New Minimum Wage in Canada 2024
Which industries are regulated by the federal government?
- Private aviation: This covers airlines, airports, aerodromes, and aircraft operations.
- Banking: This includes banks that operate internationally.
- Grain industry: This involves grain elevators, feed mills, storage facilities, and grain-seed washing facilities.
- Indigenous governance: Activities related to Indigenous self-governments and band councils for First Nations people fall under federal regulation.
- Maritime and transportation: Services like port operations, maritime shipping, ferries, tunnels, canals, bridges, and pipelines (for oil and gas) that cross provincial or international borders.
- Federal Crown businesses: Examples include Canada Post Corporation.
- Courier and postal services.
- Cross-border highways: Highways that extend beyond national or international borders.
- Transportation services: This includes certain short-line railroads, trucks, and buses.
- Broadcasting: Regulation extends to radio and television transmissions.
- Communication technologies: This covers cable systems, the Internet, telephones, and telegraphs.
- Atomic energy: This includes uranium mining and processing.
- Other critical enterprises: Any business vital for the functioning of the aforementioned sectors falls under federal regulation.
- Municipalities and businesses in Yukon, the Northwest Territories, and Nunavut (only for Section I of the Code).
