Federal minimum wage in Canada increases by 7% from April 1

Federal minimum wage in Canada increases by 7% from April 1

Surya Rathee Surya Rathee
[Published 04 Apr, 2023 | 05:20 AM]
About Author - 5 min read

In an effort to “keep pace with the inflation”, Canada’s minimum wage will be increasing by $1.10 (INR 67.33) from April 1, 2023. 

Canada’s Minister of Labour, Seamus O’Regan Jr. recently quoted, “The cost of living is rising, so we’re making sure that wages keep going up too. We’re looking after workers because that’s how you grow the economy and create more prosperity for everyone.”

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According to a recent press release from Employment and Social Development Canada (ESDC), the federal minimum wage in Canada will increase to $16.65 (INR 1,019.15) as of April 1, 2023. This announcement came after the Consumer Price Index rose by 6.8% in 2022.

According to ESDC statistics, around 26,000 Canadians working in the country earn less than $15.55(INR 951.82) per hour - which is the current federal minimum wage. The updated federal minimum wage applies to workers and interns in federally regulated private sectors, including banks, postal & courier services, and interprovincial air, rail, road, & marine transportation.

Minimum wages across Canada

With the rise in the federal minimum wage, employers must now pay their employees whichever rate is higher between the federal minimum wage and the minimum wage in their province/territory of operation. Here are the average salaries in Canada across each province/territory.

A particularly significant move by Canada

The decision to increase federal wages comes at a time when the Canadian economy is recovering from the effects of the COVID-19 pandemic. The pandemic has significantly impacted the country's economy, with many Canadians losing their jobs or facing reduced hours and wages.

The pay raise is important in terms of attracting and retaining top talent in the country. The federal government employs a large number of professionals in a range of fields. The professions mentioned on the Canada occupation in-demand list, and many could earn higher salaries in their respective sectors. By increasing federal wages, the government is sending a clear signal that it values the work of its employees and is willing to invest in their skills and expertise.

However, the government's decision to increase federal wages has not been without criticism. Some critics have argued that the pay raise is too generous and that it will put pressure on other employers to increase their wages as well. Others have pointed out that the pay raise is unlikely to significantly impact workers who are employed in low-wage jobs, such as those in the service sector.

Despite these criticisms, the government's decision to increase federal wages is therefore particularly significant, as it represents a commitment to supporting workers and ensuring that they are able to maintain their standard of living.

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