Federal Minimum Wage Is Going Up To $15 At The End Of 2021 But Workers Could Get Paid More
It all depends on provincial and territorial minimum wage!
At the end of the year, Canada's federal minimum wage is going to increase to $15 but some workers could get paid more than that.
In the 2021 budget, the government proposed a pay hike for workers in the federally regulated private sector and the new $15 an hour minimum wage will come into effect on December 29, 2021.
The federally regulated private sector covers many different industries including airlines, airports, banks, First Nations band councils, most federal Crown corporations (like Canada Post), postal and courier services, radio and television broadcasting, road transportation services and telecommunications.
There are about 26,000 people in the federally regulated private sector that currently earn less than $15 an hour who will get a pay increase with this new rate.
Most of those employees are in Ontario and Quebec.
For workers who are in provinces or territories where the local minimum wage is higher than the federal rate, the higher hourly wage is what they'll be paid.
The amendments to the Canada Labour Code that set the new federal minimum wage also make sure that the rate will rise with inflation.
Starting in 2022, the wage will be adjusted every year on April 1.
There are seven provinces that have minimum wage lower than the new federal rate of pay.
Minimum wage is $13.50 in Quebec, $13 in P.E.I., $12.95 in Nova Scotia, $12.75 in Newfoundland, $11.95 in Manitoba, $11.81 in Saskatchewan and $11.75 in New Brunswick.
Ontario's minimum wage will be lower than the federal minimum wage. However, the Ontario government said in November that it will propose legislation that would increase the province's minimum wage to $15 per hour starting January 1, 2022.
Currently, Nunavut has the highest hourly rate in Canada at $16 an hour!