Minimum wage increases for employees in federally and provincially regulated workplaces

As a result of and in an effort to reflect/keep up with inflation, the minimum wage for federally regulated private-sector workplaces across Canada increased as of April 1st. Following suit, the minimum wage for provincially regulated workplaces in each province or territory (except Alberta and Nunavut) has increased as of April 1st or will increase in 2023.

Federal minimum wage increase

On April 1st, the minimum wage for employees working in federally regulated, private sector organizations (including First Nations Administrations/Bands, and many areas of Indigenous self-governments) rose from $15.55 to $16.65.

In provinces/territories where the provincial minimum wage rate is higher than the federal minimum wage rate (as will be the case in BC and the Yukon), employers will need to pay the higher rate, even if the employee is working for a federally regulated organization.

Provincial minimum wage increases

Minimum wage for all provinces/territories, except Alberta and Nunavut, increased or will increase for employees working in each respective provincially regulated workplace as follows:

  • BC – On June 1st, 2023, minimum wage will rise from $15.65 to $16.75
  • Manitoba – On April 1st, minimum wage rose from $13.50 to $14.15 and will rise again to $15.30 on October 1st , 2023
  • New Brunswick – on April 1st, minimum wage increased from $13.75 to $14.75
  • Newfoundland & Labrador – On April 1st, minimum wage rose from $13.70 to $14.50 and will rise again to $15.00 on October 1st , 2023  
  • Northwest Territories – On September 1st, 2023 minimum wage will begin increasing annually using a formula based on the percentage change in the Consumer Price Index (for Yellowknife) and the percentage change in the average hourly wage in the NWT for the preceding year
  • Nova Scotia – On April 1st, minimum wage rose from $13.60 to $14.50 and will rise again to $15.00 on October 1st, 2023
  • Ontario – On October 1st, 2023, minimum wage will rise from $15.50 to $16.55
  • Prince Edward Island – On October 1st, 2023, minimum wage will rise from $14.50 to $15.00
  • Quebec – On May 1st, 2023, minimum wage will rise from $14.25 to $15.25
  • Saskatchewan – On October 1st, 2023, minimum wage will rise from $13.00 to $14.00  
  • Yukon – On April 1st, minimum wage rose from $15.70 to $16.77  

What does this mean for employers?

Relevant employers must increase wages for any employee who currently makes less than the new minimum wage rates – regardless of how they are paid. In other words, this applies to employees who are paid on an hourly, salaried, or commission/incentive basis.

Making these increases is non-negotiable and provides an important benefit to some of the lowest paid workers across Canada. That said, and as we noted in a few previous posts (2023 Salary Increase Projections and Creative Compensation), we do advise employers to be cautious when making ad-hoc or across the board adjustments (i.e., for employees who are making more than and/or well beyond the new minimum wage rates) that are directly aligned with inflation.

Jouta’s HR Consultants can help you with compensation planning
as a result of minimum wage increases.