ARTICLE
7 March 2025

Federal Minimum Wage To Increase April 1, 2025

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Hicks Morley Hamilton Stewart Storie LLP

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Hicks Morley is a leading Canadian firm focusing on management-side labour and employment law and advocacy. With offices in Toronto, Waterloo, London, Kingston and Ottawa, the firm’s 120+ lawyers offer strategic advice, risk assessment, consultation, representation, and training on all aspects of human resources law to clients nationwide.
The federal government has announced that, effective April 1, 2025, the federal minimum wage will be increased from $17.30 to $17.75 per hour, representing a 2.4% increase.
Canada Employment and HR

The federal government has announced that, effective April 1, 2025, the federal minimum wage will be increased from $17.30 to $17.75 per hour, representing a 2.4% increase.

The increase applies to the federally regulated private sectors, including banks, postal and courier services, telecommunications, and interprovincial air, rail, road and marine transportation.

The federal minimum wage is adjusted on an annual basis based on Canada's annual average Consumer Price Index (CPI) from the prior calendar year. This April 1 adjustment reflects the 2.4% increase in Canada's annual average CPI for 2024.

As stated in the announcement, employers must ensure that their payroll information is adjusted accordingly so all employees (including interns) receive the correct hourly wage as of April 1, 2025. Note that if the applicable provincial or territorial minimum wage rate exceeds the federal rate, federal employers must pay the higher of the two.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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