'This minimum wage increase, linked to the annual rise in the Yukon's consumer price index, will better help Yukoners make ends meet'
Four Canadian provinces are set to increase their minimum wage rates next month.
In Yukon, the base pay will rise to $17.94 per hour, up from the current $17.59, effective April 1.
“Ensuring the minimum wage keeps pace with inflation is one way of keeping life affordable for Yukoners,” said Richard Mostyn, Yukon’s minister of community services. “This minimum wage increase, linked to the annual rise in the Yukon’s consumer price index, will better help Yukoners make ends meet.”
The increase will also support businesses in attracting and retaining skilled employees in a competitive job market, said the provincial government.
The increase coincides with the incoming minimum wage increase for federal government workers. At the federal level, the wage will rise to $17.75 per hour from the $17.30 hourly rate.
Nova Scotia’s base pay will also increase to $15.70 from the current $15.20 hourly pay, by April 1. It will jump to $16.50 on Oct. 1.
“Inflation continues to put pressure on families across the province. We need to do what we can to help,” said Nolan Young, Nova Scotia’s minister of labour, skills and immigration. “This year we will see the biggest increase in minimum wage ever made in our province. We’re supporting hard-working Nova Scotians while addressing the rising cost of living.”
Also, as of April 1, the minimum wage in Newfoundland and Labrador (NL) will increase to $16.00 per hour, up from $15.60, according to the Retail Council of Canada (RCC).
And the provincial government is facing criticism about the increase.
According to the NL Federation of Labour, the increase “leaves thousands of workers and their families unable to meet basic needs, with broader implications for our communities and our economy”.
“Every worker deserves the dignity of being able to provide for themselves and their families. Yet, in Newfoundland and Labrador, nearly one-quarter of our workforce—approximately 23%—earns less than $20 per hour, making it increasingly difficult to make ends meet,” said the group’s President Jessica McCormick.
“Tying the minimum wage to inflation alone is not enough. Without more substantial increases, workers will continue to fall behind, unable to keep pace with the rising costs of essentials like housing, food, and childcare. In real terms, they will remain trapped earning $15 an hour indefinitely.”
New Brunswick’s minimum wage will increase to $15.65 per hour on April 1. This is an increase of 35 cents from the current rate of $15.30 per hour.
Six per cent of all employees in the province were earning the minimum wage last year, down from 6.7 per cent in 2023, says the province.
The minimum wage rate is indexed to New Brunswick’s consumer price index, rounded to the nearest five cents. The CPI grew by 2.2 per cent in 2024.
Financial stress is still the top worry for workers aged 40 to 60, according to Healthcare of Ontario Pension Plan (HOOPP).
Minimum wage increases do little to lower poverty rates and can actually hurt low-income workers, according to a previous report from the Fraser Institute.
Here’s the minimum wage rates across Canada as they stand today:
Employers should take proactive steps to ensure compliance and manage the financial impact of upcoming minimum wage changes, according to Marie-Yosie Saint-Cyr, an employment and labour law subject matter expert.
Employers must update their payroll systems to reflect the new minimum wage, ensuring all employees currently earning minimum wage are paid the new rate when the rates take effect, she said via LinkedIn.
“Employers are only legally required to pay the minimum wage, not to increase wages for employees already earning above minimum wage; however, employers should review their overall compensation structure to potentially adjust wages for employees slightly above minimum wage to maintain equity and pay parity within the company,” she said.
Most Canadians are afraid they may not have enough cash saved up for life after work. In fact, 61% of Canadians fear running out of money in retirement, according to a previous CPP Investments report.
Saint-Cyr added that employers “may also need to consider budgeting for increased labour costs and exploring potential strategies to offset these costs, like increasing prices or improving operational efficiency.”
One in three (32 per cent) of Canadian companies say mandatory minimum wage hikes result in increased salaries/wages across the entire company – not just for minimum wage workers, found a 2024 survey.
