Canada Increases Federal Minimum Wage to $16.65 to Combat Inflation

Widespread inflation is causing great damage to all countries, although the degree varies. In response, Canada has chosen to increase the federal minimum wage by $1.10 in order to ensure that wages are able to keep up with the rise in prices.

How the Increase in Canada’s Federal Minimum Wage Will Affect You

As per Seamus O’Regan Jr., the Minister of Labour in Canada, the decision to increase wages is aimed at keeping up with the rising cost of living. This measure is intended to benefit workers in the country. Seamus O’Regan Jr. believes that by raising wages, the economy can expand and provide prosperity for all.

Employment and Social Development Canada (ESDC) released a statement informing the public that the Canadian federal minimum wage will rise to $16.65 starting from April 1, 2023.

The 7% salary increase was granted due to the 6.8% rise in the Consumer Price Index (CPI) in 2022.

As per the ESDC, approximately 26,000 employed individuals in Canada are making a salary lower than $15.55 per hour, which happens to be the prevailing federal minimum wage.

The recently established minimum wage for the federal government will have an impact on various private industries that fall under federal regulations. These industries include banking, postal services, courier services, as well as interprovincial transportation methods such as road, air, and rail.

Canada’s Minimum Wage

Canada has various minimum wages, including the federal minimum wage, which is supplemented by individual minimum wages set by each province or territory.

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As stated by the ministry, it is obligatory for employers to compensate their employees with either the federal minimum wage or the minimum wage specific to their province/territory, depending on which one is higher.

As of the current moment, Nunavut had the highest minimum wage at $16.00 per hour, whereas Saskatchewan had the lowest rate of $13.00.

Rights related to employment for new residents in Canada

New immigrants from Canada need to secure jobs in order to provide for themselves and their families. Nevertheless, they might end up pursuing job opportunities that make them vulnerable to being taken advantage of.

The main explanation for why new immigrants in Canada dominate low-paying positions is because these are usually the only employment opportunities available to them upon their arrival in the country.

In order to prevent employers from taking advantage of workers, the Immigration, Refugees, and Citizenship Canada (IRCC) makes a strong effort to clearly communicate the rights of newcomers to Canada regarding employment.

It is important to understand that the Canada Labour Code, a federal law in Canada, plays a significant role in protecting the rights of workers. This legislation ensures that all individuals, whether they are permanent residents, citizens, foreign workers, or international students, have the right to fair pay for their work and a workplace that prioritizes their safety.

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One comment

  1. Syed Mazhar Hussain

    I am interested to work in Canada so my preference would be work permit visa

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