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ARTICLE · 19 AUGUST 2021

$15 Per Hour Federal Minimum Wage Will Take Effect December 29, 2021

Littler - Canada
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A new federal minimum wage of $15 per hour applicable to federally regulated employees1 in the private sector was included in the Budget Implementation Act, 2021, No. 1. The new wage rate will take effect...

CanadaEmployment and HR
Rhonda B. Levy
Rhonda B. Levy
Monty Verlint
Monty Verlint

A new federal minimum wage of $15 per hour applicable to federally regulated employees1 in the private sector was included in the Budget Implementation Act, 2021, No. 1. The new wage rate will take effect on December 29, 2021. 

Presently, the Canada Labour Code (CLC) requires federally regulated employers—i.e., those subject to the CLC's employment standards—to pay each employee the minimum wage of the province where the employee is usually employed. Accordingly, if the employer has employees doing the same job in different provinces, they may pay them different minimum wages.

As of December 29, 2021, federally regulated employees may not be paid less than $15 per hour. However, if the minimum wage in the province where the employee is usually employed is higher than $15 per hour, the employee must be paid the higher provincial minimum wage. 

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