Canada is entering another phase of minimum wage increases in 2025, a move designed to help workers cope with rising costs of living and ongoing inflation. Both the federal government and provincial authorities have announced new rates, with changes scheduled throughout the year.
For millions of workers, this increase represents a vital adjustment to ensure that wages better align with everyday expenses such as food, rent, and utilities.
Understanding the new minimum wage rates, who qualifies, and when these increases start is essential for workers and employers alike. Let’s take a closer look at the details.
Federal Minimum Wage in 2025
Starting September 1, 2025, the federal minimum wage will rise to $17.75 per hour, reflecting a 2.4% increase. This applies to workers in federally regulated industries such as banking, telecommunications, and interprovincial transportation.
However, if you work in a province or territory where the local minimum wage is higher than the federal rate, your employer must pay you the higher provincial amount.
Provincial and Territorial Minimum Wage Rates
Each province and territory sets its own wage schedule, with increases effective at different times in 2025. Some regions are making modest adjustments, while others are making significant hikes to reflect inflation pressures.
1. Canada Minimum Wage 2025 by Province/Territory
| Province/Territory | New Wage (per hour) | Effective Date |
|---|---|---|
| Federally Regulated | $17.75 | Sept 1, 2025 |
| Ontario | $17.60 | Oct 1, 2025 |
| Nova Scotia | $16.50 | Oct 1, 2025 |
| Manitoba | $16.00 | Oct 1, 2025 |
| Saskatchewan | $15.35 | Oct 1, 2025 |
| Prince Edward Island | $16.50 → $17.00 | Oct 1, 2025 |
| British Columbia | $17.85 | June 1, 2025 |
| Yukon | $17.94 | Apr 1, 2025 |
| Northwest Territories | $16.95 | Sept 1, 2025 |
| Nunavut | $19.75 | Sept 1, 2025 |
| Quebec | $16.10 | May 1, 2025 |
| New Brunswick | $15.65 | Apr 1, 2025 |
| Alberta | $15.00 | No change in 2025 |
Nunavut continues to lead the country with the highest Canada minimum wage at $19.75 per hour, while Alberta remains unchanged at $15.00 per hour, the lowest among all provinces.
Eligibility Rules for the Minimum Wage Increase
To benefit from the 2025 wage hike, workers must:
- Be employed in either federal or provincial jurisdictions.
- Follow the higher rate if the province sets a wage above the federal standard.
- Belong to eligible categories of employment. Some regions have special rules for:
- Students under 18 (working limited hours).
- Domestic or home-based workers.
- Online platform and gig economy workers.
If you are not actively working on or after the effective date, you will not qualify for the new rate. Employers are legally required to comply with these increases, and workers can contact local labour standards offices if discrepancies arise.
How Workers Can Confirm Their New Wages
- Check Pay Stubs – After the effective date, your hourly rate should reflect the updated minimum wage.
- Confirm Worker Category – Ensure you are classified correctly (standard worker, student, gig worker, etc.).
- Contact Employer or HR – If your wages have not been updated, raise the issue with your employer.
- File a Complaint – For unresolved disputes, contact your provincial or federal labour standards authority.
Minimum Wage and Overtime Rules
The 2025 wage increases also affect overtime calculations. Since overtime is based on standard hourly pay, higher minimum wages will raise the base for overtime rates.
- Most provinces apply overtime after 40–44 hours per week.
- Workers are entitled to 1.5 times their hourly wage for extra hours.
- Minimum wage hikes do not remove employer obligations for overtime pay.
Why the Increase Matters
With inflation making essentials more expensive, the 2025 minimum wage adjustments aim to:
- Reduce poverty among low-income workers.
- Improve quality of life by ensuring basic needs are met.
- Promote fairness by aligning wages with cost-of-living indexes (CPI).
- Support economic growth through increased consumer spending power.
The Canada 2025 minimum wage increase marks another step toward addressing inflation and supporting workers across provinces and territories. While amounts and dates vary, the increases are designed to help families better manage daily expenses.
From Nunavut’s $19.75 per hour rate to Alberta’s unchanged $15.00 per hour, the differences highlight the regional economic challenges across the country.
For workers, staying informed about the effective dates and knowing how to confirm compliance is essential. For employers, meeting legal obligations is not optional—it’s the law. This year’s wage hikes reaffirm Canada’s commitment to ensuring fair pay and greater financial stability for its workforce.
FAQs
Which province has the highest minimum wage in 2025?
Nunavut has the highest at $19.75 per hour, effective September 1, 2025.
Are all provinces increasing wages in 2025?
No. Alberta remains unchanged at $15.00/hour, the lowest in Canada.
When does the federal minimum wage change take effect?
The federal minimum wage increases to $17.75/hour on September 1, 2025.