The Canada Minimum Wage 2025 update brings important news for workers across the country. With the cost of living rising, both the federal government and provincial authorities have introduced new wage rates to protect employees.
From April 2025, the federal minimum wage increased to $17.75 per hour, with several provinces following with their own adjustments.
This article provides a full breakdown of the new wage rates, province by province, along with effective dates and categories of workers impacted.
Federal Minimum Wage 2025
The federal minimum wage is the lowest wage set by the Government of Canada that applies to federally regulated workers, such as those in transportation, banking, and communication.
- Federal Minimum Wage 2025: $17.75/hour
- Effective Date: April 1, 2025
- Increase Percentage: 2.4% from 2024 levels
- Validity: Until March 31, 2026
This wage is adjusted annually based on inflation and is designed to keep federal employees from falling behind rising living costs.
Provincial Minimum Wage Updates 2025
Each province and territory in Canada has its own minimum wage laws, which may be higher than the federal rate. Employers must always pay the higher of the two (provincial or federal).
Here is the province-by-province breakdown of the latest changes:
| Province/Territory | New Rate 2025 | Effective Date | Notes |
|---|---|---|---|
| Ontario | $17.65/hr | Oct 1, 2025 | Student wage: $16.65/hr; Homeworkers: $19.50/hr |
| Manitoba | $16.10/hr | Oct 1, 2025 | Up from $15.85/hr |
| Saskatchewan | $15.50/hr | Oct 1, 2025 | Up from $15.20/hr |
| Prince Edward Island | $16.60/hr | Oct 1, 2025 | Rising to $17.10/hr on Apr 1, 2026 |
| Newfoundland & Labrador | $16.25/hr | Apr 1, 2025 | Already in effect |
| New Brunswick | $15.75/hr | Apr 1, 2025 | Overtime: $23.62/hr |
| Yukon | $18.10/hr | Apr 1, 2025 | Increased by 2% over 2024 |
| Nova Scotia | $15.85/hr | Apr 1, 2025 | Will rise to $16.60/hr on Oct 1, 2025 |
| Quebec | $16.25/hr | May 1, 2025 | Applies to general workers |
| British Columbia | $18.00/hr | Jun 1, 2025 | Special rates apply for liquor servers and platform workers |
| Northwest Territories | $17.10/hr | Sep 1, 2025 | Up from $16.80/hr |
| Nunavut | $19.90/hr | Sep 1, 2025 | Highest in Canada |
| Alberta | $15.20/hr | Current rate | Student wage: $13.50/hr; Salespersons: $610/week; Domestic workers: $2,900/month |
What This Means for Workers
These wage hikes aim to ensure workers can cope with rising housing, food, and energy costs. For example, Ontario’s increase to $17.65/hr directly helps students, part-time workers, and homeworkers who are often in the most vulnerable positions.
Meanwhile, Nunavut maintains the highest minimum wage at $19.90/hr, reflecting the high cost of living in the North. At the other end, Alberta remains at $15.20/hr, making it one of the lowest in the country.
Key Highlights
- Federal Rate: $17.75/hr, effective April 1, 2025
- Ontario: Jumps to $17.65/hr in October 2025
- Prince Edward Island: Two-step increase, reaching $17.10/hr by April 2026
- British Columbia: $18/hr, among the top provincial rates
- Nunavut: $19.90/hr, the highest in Canada
Why Minimum Wage Increases Matter
The rise in minimum wage is tied closely to inflation and cost of living. As groceries, rent, and healthcare expenses climb, workers rely on these adjustments to keep pace. For many Canadians, especially those in hospitality, retail, and service industries, minimum wage jobs are their primary income source.
Increasing minimum wages not only supports workers but also boosts local economies by giving people more spending power. However, small businesses may feel the pressure of higher payroll costs.
The Canada Minimum Wage 2025 updates are crucial for workers across the country. With the federal rate set at $17.75/hr and most provinces adjusting their own wages, employees can expect modest relief from inflation pressures.
While the changes won’t solve all financial challenges, they represent progress toward fairer wages and improved living standards. Workers should check their province’s effective date to ensure they are being paid correctly under the new minimum wage laws.
As Canada continues to battle high living costs, these wage hikes send a clear message: supporting workers remains a national priority.
FAQs
What is the new federal minimum wage in Canada for 2025?
The new federal minimum wage is $17.75 per hour, effective from April 1, 2025.
Which province has the highest minimum wage in 2025?
Nunavut leads with a minimum wage of $19.90 per hour, reflecting its higher living costs.
When will Ontario’s new minimum wage take effect?
Ontario’s rate will increase to $17.65 per hour on October 1, 2025, with special rates for students and homeworkers.