A lot of new Canadian laws and rules are being introduced in 2024 that you should know about.
That includes changes to the minimum wage, alcohol tax, climate action incentive payment, tax-free savings account, and more.
These Canadian laws and rules could impact you — especially when it comes to earning money, getting payments from the federal government and saving money.
Minimum wage
Most provinces and territories make changes to minimum wage each year, usually in April or October.
While some governments increase the pay rate based on Canada's Consumer Price Index and haven't announced changes yet, a few provinces have already revealed what updates are set for 2024.
P.E.I.'s minimum wage will increase twice in 2024, from $15 to $15.40 per hour on April 1 and from $15.40 to $16 per hour on October 1.
As of October 1, the minimum wage in Saskatchewan will be $15 an hour.
Nova Scotia's minimum wage will go up to $15.20 on April 1.
Also, Nunavut increased the minimum wage already this year, from $16 an hour to $19 an hour effective January 1, 2024.
That's the highest minimum wage in Canada!
Alcohol tax
Canada's alcohol escalator tax automatically increases federal excise taxes on beer, wine and spirits on April 1 each year.
According to estimates by the Canadian Taxpayers Federation, the federal government will increase the alcohol tax by 4.7% in 2024.
Taxes make up around half of the price of beer, more than three-quarters of the price of spirits and 65% of the price of wine, the Canadian Taxpayers Federation said.
International student cost of living financial requirement
There are new rules for the cost of living financial requirement that are affecting international students in Canada for 2024.
To ensure international students are financially prepared to study and live in Canada, the cost of living financial requirement for study permit applicants has been raised as of January 1, 2024.
Now, an international student applying for a study permit will need to show that they have at least $20,635 — 75% of the low-income cut-off — saved up along with enough money for their first year of tuition and travel costs.
This change from the federal government only applies to new study permit applications received on or after January 1, 2024.
The cost of living financial requirement will be adjusted every year based on Statistics Canada's update of the low-income cut-off.
The low-income cut-off represents the minimum amount of income a person needs to ensure that they don't have to spend a greater-than-average portion of their income on necessities.
If you're an international student planning to study at a post-secondary school in Quebec, this cost of living financial requirement rule change doesn't.
Quebec has its own cost of living threshold for international students attending post-secondary institutions in the province.
Tax-free savings account dollar limit
An increase to the annual contribution dollar limit for tax-free savings accounts came into effect on January 1, 2024.
It's now $7,000 for the year which is a hike of $500 from the dollar limit in 2023, $6,500.
Canada's tax-free savings account — which is also known as a TFSA — is a way for those who are 18 years of age or older and have a valid social insurance number to save money tax-free.
Contributions to a TFSA aren't deductible for income tax purposes.
Any amount contributed and any income earned in the account is generally tax-free even when it's withdrawn.
If you have an account, you also have a TFSA contribution room which is the maximum amount that you can contribute to your TFSA each year.
Registered retirement savings plan contribution limit
There is a new registered retirement savings plan contribution limit put in place by the Canada Revenue Agency for 2024.
It's now $31,560 and that's an increase from the contribution limit in 2023.
While the limit in 2024 is still 18% of the previous year's income like it was last year, the dollar amount for the maximum RRSP contribution has increased from $30,780 to $31,560.
Climate action incentive payment rural supplement
With the climate action incentive payment, residents of small and rural communities in Alberta, Manitoba, Ontario, Saskatchewan, Newfoundland and Labrador, Nova Scotia, P.E.I. and New Brunswick can get a 10% rural supplement.
That's in addition to the base amount paid out by the federal credit.
It was announced that the federal government is planning to double the climate action incentive payment rural supplement, bringing it to 20% starting in April 2024.
Bail
The federal government has made amendments to the Criminal Code's bail system.
These amendments were made to "address serious repeat violent offending" with weapons including firearms, knives, bear spray and others.
Also, the government said changes made to the bail system will "address the enhanced risks posed by intimate partner violence" in Canada.
These changes amend the bail provisions of the Criminal Code to:
- create a new reverse onus to target serious repeat violent offending involving weapons
- expand the list of firearms offences that trigger a reverse onus
- broaden the reverse onus targeting repeat offenders of intimate partner violence
- clarify the meaning of the term "prohibition order" in an existing reverse onus for offences involving weapons
- require courts to consider an accused person's history of convictions for violence when making a bail decision
- require courts to state on the record for any bail decision that they considered the safety and security of the community in relation to the alleged offence
- require courts to state on the record for any bail decision how they considered the particular circumstances of Indigenous accused and accused from vulnerable overrepresented populations
The bail reforms came into effect on January 4, 2024.
Termination notice and pay
Amendments are being made to the Canada Labour Code to change how much notice of employment termination employers are required to give to employees in federally regulated workplaces.
That includes people working in federal crown corporations and federally regulated private-sector industries like:
- international and interprovincial transportation (railways, shipping, trucking and bus operations)
- airports and airlines
- port operations
- telecommunications and broadcasting
- banks
- First Nations band councils
The amendments to termination of employment will require employers to provide workers with a notice of termination based on the length of their continuous employment.
Between three months and three years of continuous employment, two weeks' notice is required which is unchanged by the amendments.
However, starting in 2024, once an employee has completed three years of continuous employment, the notice period increases to three weeks.
Then, the notice period increases by one week for each additional year of work up to a maximum of eight weeks.
Instead of notice, employers can provide termination pay equivalent to the wages an employee would've earned during the notice period or a combination of notice and pay in lieu.
These changes are coming into effect on February 1, 2024.
This article's cover image was used for illustrative purposes only.
