Hourly minimum compensation

Canada's hourly minimum wage is the lowest hourly rate an employer must pay workers for each hour worked. As of 2024, the federal minimum wage stands at CAD 16.65 per hour, applicable to employees in federally regulated industries such as banking, telecommunications, interprovincial transportation, and crown corporations. However, Canada's minimum wage framework is complex because each province and territory sets its own minimum wage, which often exceeds the federal rate. Provincial rates vary significantly, ranging from approximately CAD 15.00 to CAD 17.40 per hour depending on jurisdiction.

The federal minimum wage is established under the Canada Labour Code, Part III, which governs employment standards for federally regulated private sector employees. Provincial minimum wages are set by individual provincial employment standards legislation, such as Ontario's Employment Standards Act and British Columbia's Employment Standards Act.

The federal minimum wage was last increased on June 15, 2024, rising from CAD 15.55 per hour. This adjustment reflects the government's indexation formula tied to inflation. Provincial rates are adjusted on varying schedules; some provinces index annually to inflation, while others adjust through legislative amendments.

Employers must ensure all employees receive at least the applicable minimum wage for their jurisdiction—either the federal rate or their province's rate, whichever is higher. Payroll teams must verify the correct rate based on where work is performed and the industry classification. Special rules may apply to certain workers, such as students, apprentices, or those in specific occupations, so employers should consult current provincial or federal employment standards legislation to confirm compliance requirements for their workforce.