Travellers wait to cross into Canada at the Rainbow Bridge in Niagara Falls, Ontario, August 9, 2021 as Canada reopens for non-essential travel to fully vaccinated Americans. (GEOFF ROBINS / AFP)
OTTAWA – Employment and Social Development Canada announced Monday the federal minimum wage will increase from 15 Canadian dollars ($11.7) to 15.55 Canadian dollars per hour on April 1 in line with inflation hike.
According to a news release, the federal minimum wage, which came into force on Dec 29, 2021, is adjusted automatically on April 1 of every year, based on the average annual increase of the Consumer Price Index CPI, as reported by Statistics Canada.
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According to a news release, the federal minimum wage, which came into force on Dec 29, 2021, is adjusted automatically on April 1 of every year, based on the average annual increase of the Consumer Price Index CPI, as reported by Statistics Canada
"This is to ensure that the federal minimum wage keeps pace with inflation and this year's rate increase reflects the 3.4 percent annual average rise of the CPI for Canada in the previous calendar year," the release said.
This change will apply to workers and interns in federally regulated private sectors, including banks, postal and courier services, and interprovincial air, rail, road, and marine transportation. There are approximately 18,500 employers in federally regulated industries, including federal Crown corporations, which together employ 955,000 people, or 6 percent of all employees in Canada, according to the release.
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For those working in provinces or territories where the general minimum wage rate is higher, the higher rate will continue to apply, the release said. Canada is experiencing high inflation and inflation rate surpassed 5 percent for the first time since September 1991 and reached 5.1 percent in February on a year-over-year basis.
