Hourly minimum compensation

# Hourly Minimum Wage in Canada

Canada's federal hourly minimum wage is currently $16.55 per hour as of June 2024. This rate applies to employees working in federally regulated industries, including banking, telecommunications, interprovincial transportation, and crown corporations. The federal minimum wage establishes a floor below which employers cannot legally compensate workers for their labour.

The federal minimum wage is governed by the *Canada Labour Code*, Part II, which sets employment standards for workers in federal jurisdiction. Provincial and territorial governments maintain their own separate minimum wage rates, which often differ from the federal rate. Employers must comply with whichever minimum wage is higher in their applicable jurisdiction.

The federal government indexed the minimum wage to inflation in 2018, establishing an automatic annual adjustment mechanism. The most recent increase to $16.55 took effect on June 15, 2024, reflecting the Consumer Price Index. Future adjustments will continue annually on June 15, provided inflation remains positive.

Payroll teams must ensure all employees in federally regulated workplaces receive at least $16.55 per hour for all hours worked, including overtime hours calculated at the applicable premium rate. This applies to full-time, part-time, and temporary workers. Employers should verify whether their operations fall under federal or provincial jurisdiction, as misclassification can result in significant compliance violations and back-wage liability. Regular audits of payroll records help ensure adherence to minimum wage requirements across all employee classifications.