New Federal Minimum Wage Rate for Federally Regulated Private Sector

In its 2021 budget, the Government of Canada proposed a federal minimum wage rate of $15 per hour, which would rise with inflation.

On June 30, 2021, the Government of Canada announced that this change will take effect on December 29, 2021 following the recent passage of the Budget Implementation Act, 2021, No. 1.

As a result, federally regulated workers in the private sector will be entitled to a minimum wage rate of $15 per hour effective December 29, 2021. Federally regulated workers in the private sector include those who work in the following industries:

  • air transportation, including airlines, airports, aerodromes and aircraft operations;
  • banks, including authorized foreign banks;
  • grain elevators, feed and seed mills, feed warehouses and grain-seed cleaning plants;
  • First Nations band councils (including certain community services on reserve);
  • most federal Crown corporations, for example, Canada Post Corporation;
  • port services, marine shipping, ferries, tunnels, canals, bridges and pipelines (oil and gas) that cross international or provincial borders;
  • radio and television broadcasting;
  • railways that cross provincial or international borders and some short-line railways;
  • road transportation services, including trucks and buses, that cross provincial or international borders;
  • telecommunications, such as telephone, Internet, telegraph and cable systems;
  • uranium mining and processing and atomic energy; and
  • any business that is vital, essential or integral to the operation of one of the above activities.

The new minimum wage rate will not apply to provincially regulated workers or federally regulated workers in the public sector.

Employers considering the potential impact of the upcoming change to the federal minimum wage rate should contact a member of our labour and employment team.

 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.