Rampant inflation is ravaging every country, albeit at different rates. Canada has decided to raise the federal minimum wage by $1.10 to help wages keep pace with inflation.

According to Canada’s Minister of Labour, Seamus O’Regan Jr., the ministry decided to raise wages to match the increasing cost of living. It is a move designed to help the country’s workers. According to him, raising wages is how you grow the economy and create prosperity for everybody.

The announcement was made in a press release from Employment and Social Development Canada (ESDC), stating that the Canadian federal minimum wage would increase to $16.65 from April 1, 2023, henceforth.

The total Consumer Price Index (CPI) increase in 2022 was 6.8%, hence the 7% wage increase.

According to the ESDC, there are about 26,000 working Canadians earning less than $15.55 per hour, which is the current federal minimum wage.

The new federal minimum wage rate will apply to all federally regulated private industries like banking, postal, and courier services, as well as interprovincial transportation, including road, air and rail.”

Canada’s Minimum Wage

In Canada, there are different minimum wages. There is the federal minimum wage, but every province/territory also has its own minimum wage.

According to the ministry, employers must pay their employees the federal minimum wage or the minimum wage in their province/territory, whichever is higher.

At the time of writing, Nunavut had the highest minimum wage rate at $16.00 per hour, while Saskatchewan had the lowest rate at $13.00

Employment Rights For New Canadian Residents

New Canadian immigrants must find employment to support themselves and their families. However, they may pursue employment opportunities that leave them prone to exploitation.

It is the reason why new immigrants to Canada are the majority in low-wage jobs. These are the only jobs they can typically find when they arrive in the country.

Immigration, Refugees and Citizenship Canada (IRCC) try to vividly explain employment rights to Canadian newcomers in an effort to combat the exploitation of workers by employers.

It is crucial to note that workers’ rights in Canada are generally upheld by federal legislation called the Canada Labour Code. It states that all workers, including permanent residents, citizens, foreign workers, international students, etc., are entitled to adequate compensation for their work and a safe work environment.

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