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ARTICLE · 03 AUGUST 2021

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Canada Is Introducing A Federal Minimum Wage: What Employers Need To Know

From 29 December 2021, a new federal minimum wage of CAD 15 per hour will take effect.

CanadaEmployment and HR

From 29 December 2021, a new federal minimum wage of CAD 15 per hour will take effect.

A new Canadian federal minimum wage of CAD 15 per hour was included in the Budget Implementation Act, 2021, No. 1. It will come into effect on 29 December 2021 and will apply to workers in the federally regulated private sector.

Currently, federally regulated employees are subject to the minimum wage of the province or territory in which they are typically employed. Accordingly, federal employers could have employees occupying the same position but compensated differently because they are employed in different provinces or territories.

After 29 December 2021, no federally regulated employee may be paid less than CAD 15 per hour.

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