The Canadian government is increasing the minimum wage for federally regulated employees to $17.30 per hour from $16.65 per hour effective April 1, 2024. From April 1, 2024, to June 1, 2024, these employees will receive the third highest minimum wage nationwide.
How this impacts employers
Federal regulated employers include those which typically operate in railways, shipping, trucking, airports and airlines, telecommunications, broadcasting and banks. The federal government provides a full list of these employers by industry.
Provincial and territorial wages versus federal wages
Federally regulated employers must pay their employees the greater of the federal minimum wage or the local minimum wage in the province or territory where the employees are located.
On April 1, 2024, only the Yukon and Nunavut will have a local minimum wage higher than the federal minimum wage. Federally regulated employees in the Yukon and Nunavut are entitled to the local minimum wages of $17.59 per hour and $19.00 per hour, respectively. On June 1, 2024, British Columbia’s minimum wage will increase to $17.40. Federally regulated employees in B.C. will receive a second pay increase this year to $17.40 from $17.30.
Employers must be aware of the local minimum wages in the provinces and territories where they operate and are obligated to pay the higher rate, which could be the local rate in places like Yukon, Nunavut and soon B.C. This change necessitates careful attention to the varying minimum wage rates across the country to ensure legal compliance and proper compensation for federally regulated employees.
If you have questions about this topic, please contact one of MLT Aikins Labour and Employment lawyers.
Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.