The Canadian government has announced an increase in the federal minimum wage effective April 1, 2023.
The Federal minimum wage will increase from $15.55 to $16.65 per hour, benefiting approximately 26,000 Canadian workers who currently earn less than the current rate.
The increase is based on the 6.8% increase seen in the 2022 CPI, in order to keep up with inflation and ensure that Canadian workers are getting a decent and fair return.
The Canadian government is committed to supporting workers who struggle financially while working part-time, and at low or minimum wages.
According to Employment and Social Development Canada, this increase applies to private sectors regulated by the federal government, including banks, postal and courier services, and interprovincial air, rail, road and maritime transportation.
The minimum wage for people working for a company that is not regulated by the federal government is set by the province or territory in which they are located, and as of April 1, 2023, it ranges from $13 to $16.77 per hour, depending on the location.
Canada’s Minister of Labour, Seamus O’Regan Jr. has stated that the cost of living is rising and it is necessary to ensure that wages also increase.
With this raise, the Canadian government is demonstrating its commitment to the welfare of workers and its ability to respond to the needs of the population.
How can Axxel HR help you?
We offer Compensation Benchmarking and Pay Equity services. We could help you to make sure that your employees are fairly paid.
Benchmarking your employee’s total compensation is an important exercise in order to support the organization by attracting and retaining the talents needed while managing the salaries and costs of the organization in the right manner.
Using multiple compensation salary surveys, our exercise will consist of cross-referencing the job descriptions to the available survey data to ensure a solid match in the compensation report.
Axxel HR will create base salary pay reference points to reflect current market value; P25, P50 and P75.
Compensation data will include base salary, bonus structure and, if available, additional compensation factors.
Contact us for more information