Indexing the wage floor to inflation still leaves Yukon, Nunavut, and BC above the federal rate
Canada’s federally regulated employers will face a higher wage floor of $18.15 an hour starting April 1, as the federal minimum wage rises in line with inflation and continues to trail some provincial rates.
According to a federal government news release, the federal minimum wage will increase from $17.75 to $18.15 per hour on April 1, bringing the cumulative rise to 21 percent since the standalone federal minimum wage was introduced in 2021.
The release says the rate is adjusted every April 1 based on Canada’s annual average Consumer Price Index from the previous year, which rose 2.1 percent in 2025 and is rounded up to the nearest $0.05.
CBC News reports that the 40‑cent increase keeps the wage aligned with inflation and applies to workers in federally regulated industries such as transport, banking and telecommunications.
Global News reports that the rate also covers air transportation, most federal Crown corporations, ports and telecommunication, among others, and that all employers in federally regulated private sectors must adjust their payrolls accordingly from April 1.
Global News reports that after the change, Yukon’s minimum wage will be $18.51 and Nunavut’s will remain $19.75, while British Columbia’s minimum wage is set to rise to $18.25 in June, all above the federal rate.
As per Employment and Social Development Canada, an employee should be paid at least the federal minimum wage, and if the provincial or territorial minimum wage where the employee usually works is higher, the employer must pay the higher rate.
In its news release, the federal government links the indexation policy to affordability measures, including the Canada Groceries and Essentials Benefit and the Food Security Fund.
The Honourable Patty Hajdu says “ensuring the federal minimum wage rises with inflation is a floor that protects workers,” especially those in the lowest paid federally regulated roles.
