Federal minimum wage set to increase on April 1

The Bank of Canada wording on a Canadian $50 bill is pictured in Ottawa on Wednesday, Jan. 11, 2023. THE CANADIAN PRESS/Sean Kilpatrick

The federal government announced Friday an increase in the federal minimum wage starting April 1, according to a press release.

It’s set to increase to $17.75 per hour, a 2.4 per cent rise from the current federal minimum wage.

“This increase will ensure salaries for workers in federally regulated private sectors are keeping pace with year-over-year cost of living increases and help Canadians working in part-time, temporary and low- or minimum-wage jobs earn more,” the press release said.

Employers are tasked with adjusting their payroll information to make sure their employees are paid the new hourly wage starting April 1.

Additionally, if the provincial or territorial minimum wage exceeds the federal rate, employers will have to pay the higher of the two, according to the press release.

“The federal minimum wage brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board,” Steven MacKinnon, minister of Employment, Workforce Development and Labour, said in the press release.

“Today’s increase brings us one step closer to building a more fair economy.”

The federal minimum wage is annually adjusted at the beginning of April based on Canada’s annual average Consumer Price Index in relation to the previous calendar year, and later rounded up to the closest $0.05, the press release said.

The federal minimum wage has steadily increased from $15 since its introduction in 2021.