Annual minimum compensation

Canada's federal minimum wage is the lowest hourly rate that employers in federally regulated industries must pay their employees. As of April 1, 2024, the federal minimum wage increased to $18.15 per hour, up from $17.75 per hour. This rate applies to workers in sectors under federal jurisdiction, including banking, telecommunications, interprovincial transportation, and crown corporations.

The federal minimum wage is established and enforced under the Canada Labour Code, Part III, which governs employment standards for federally regulated private sector employees. The rate is indexed annually to inflation and adjusted each April based on the Consumer Price Index. The April 2024 increase of $0.40 per hour reflects the government's commitment to maintaining purchasing power for minimum wage earners.

Employers in federally regulated industries must ensure all employees receive at least $18.15 per hour for all hours worked, including overtime hours calculated at the applicable rate. Provinces and territories maintain their own separate minimum wage rates, which may be higher than the federal rate. Employers operating across multiple jurisdictions must comply with the highest applicable minimum wage in each location where employees work.

Payroll teams must update compensation systems to reflect the $18.15 federal minimum wage effective April 1, 2024, and monitor future annual adjustments each April. Employers should verify whether their industry falls under federal or provincial jurisdiction to apply the correct minimum wage rate. Non-compliance can result in wage recovery orders and penalties under the Canada Labour Code.