The federal minimum wage is set to increase by 40 cents starting next week to $18.15 per hour, maintaining pace with inflation, according to an official announcement made by the government on Tuesday. This adjustment is an annual occurrence and is based on the previous year’s average consumer price index, which stood at 2.1% in 2025. The new wage is rounded up to the nearest five-cent increment.
The federal minimum wage was established in 2021 under the administration of former prime minister Justin Trudeau and is applicable to employees in federally regulated sectors such as transportation, banking, and telecommunications. It is important to note that most workers in Canada fall under provincial or territorial minimum wage rates, which vary from $15 in Alberta to $19.75 in Nunavut.