Minimum Wage in Canada: Rates, Trends & Compliance

What Is the Minimum Wage in Canada?

In Canada, the minimum wage is determined by each province or territory, with different rates across the country. As of June 2025, the federal minimum wage is $17.75 CAD per hour. The federal minimum wage is applicable to workers in federally regulated industries such as banking, transportation, and federal public service. However, individual provinces and territories may have different rates, reflecting local economic conditions.

For example:

1. Ontario: The minimum wage is $17.60 CAD per hour as of October 1, 2025.
2. British Columbia: The minimum wage is $17.85 CAD per hour.
3. Alberta: The minimum wage is $15.00 CAD per hour, with no scheduled increases announced.
4. Quebec: The minimum wage is $16.10 CAD per hour.

When comparing to USD, the minimum wage in Ontario is about $12.30 USD per hour, and in British Columbia, it is about $12.25 USD per hour, based on current exchange rates. These rates are subject to periodic updates and adjustments for inflation.

Minimum Wage in Canada Based on Region

Canada's provinces and territories each have their own minimum wage rates, reflecting regional economic factors. Some regions with higher living costs, like Ontario and British Columbia, tend to have higher minimum wage rates, while areas like Alberta have a relatively lower minimum wage. The rates are reviewed periodically, and some provinces implement annual increases based on inflation and economic conditions.

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Average vs Reasonable vs Typical Minimum Wages

Average Minimum Wage: This refers to the overall national average across all provinces and territories. As of 2025, the average minimum wage across Canada is approximately $16.40 CAD per hour.

Reasonable Minimum Wage: A reasonable minimum wage is one that allows workers to meet basic living expenses, which can vary significantly by region. In higher-cost areas like Vancouver and Toronto, a reasonable wage might be closer to $18.00–$19.00 CAD per hour or higher, reflecting the elevated costs of housing, transportation, and other essentials.

Typical Minimum Wage: This is the wage most commonly found across Canada. Typical minimum wages in provinces like Ontario, Quebec, and British Columbia range between $16.10 CAD and $17.85 CAD per hour, reflecting the cost of living and regional economic conditions.

How Does Minimum Wage Apply to Different Workers in Canada?

Minimum wage laws in Canada apply across different worker categories, with certain distinctions made based on the type of employment.

Full-Time Employee Wages

Full-time employees are entitled to the provincial or territorial minimum wage, calculated on an hourly basis for a standard 40-hour workweek. For example, a full-time worker in Ontario, with a general minimum wage of $17.60 CAD per hour, would earn $704.00 CAD per week before taxes.

Part-Time Employee Wages

Part-time employees are also entitled to receive the minimum wage, paid on an hourly basis. These employees are paid based on the hours they work, which might differ from the full-time workweek. However, part-time workers are entitled to the same benefits and protections as full-time employees, including the minimum wage standard.

Interns and Trainees

In Canada, most interns and trainees are entitled to receive at least the minimum wage, except for those who are engaged in internships as part of an educational program where they are receiving academic credit. Some internship programs may offer no compensation, as long as they meet specific educational or training conditions.

Expats

Expatriates working in Canada are subject to the same minimum wage laws as Canadian citizens, as long as their work is classified as regular employment. If they are working as independent contractors or on temporary work permits, their wage conditions may vary, but they must still receive at least the provincial or federal minimum wage applicable to their role.

Minimum Wage for Top Paying Roles in Canada

   
• Surgeons and doctors: Although they earn much higher than the minimum wage, the minimum wage in their field is set at the provincial rates, typically exceeding $20,000 CAD per month depending on experience. Actual average salaries range from $320,824 to $509,951 CAD per year for doctors in Canada, with specialized surgeons earning between $350,000 and $800,000 CAD annually.
   
• Software engineers and IT professionals: Professionals in technology can earn $100,000 CAD or more per year, far above the minimum wage.
   
• Corporate lawyers: Lawyers also see salaries well beyond the minimum wage, with some firms paying in the range of $200,000 CAD annually or more.

Factors Influencing Minimum Wage in Canada

Industry-Specific Variations

Minimum wage rates may differ across industries, as some sectors may require specialized skills or face high competition for workers, which could drive wages above the minimum. For example, high-demand industries like technology, finance, and healthcare often offer compensation above the minimum wage to attract skilled professionals. On the other hand, sectors such as retail and hospitality may have minimum wages as the baseline.

Economic Conditions

The state of the economy directly influences minimum wage rates. Inflation, employment rates, and regional economic growth can all impact how often wages are reviewed and adjusted. Provinces with stronger economic growth, such as Ontario or British Columbia, may have higher wage rates due to the increased cost of living and demand for workers.

Government Policies and Legislation

The Canadian government plays a crucial role in determining minimum wage rates. Each province and territory reviews its wage policies regularly and implements adjustments based on inflation and other economic factors. Changes to the minimum wage are typically announced by local governments and may occur annually or during economic shifts.

Tax Implications of Minimum Wage

In Canada, workers earning minimum wage are subject to the regular income tax rates, as well as payroll taxes, including the Canada Pension Plan (CPP) contributions and Employment Insurance (EI) premiums. Employers are also responsible for paying a portion of these taxes. The tax burden for minimum wage workers is progressive, with more taxes taken out as their earnings increase.

Minimum Wage History and Trends in Canada

Canada's minimum wage laws have evolved over time, with each province or territory adjusting their wage rates based on inflation and changes in the labor market. Over the past decade, many provinces have steadily raised their minimum wage rates, reflecting rising living costs, especially in urban centers.

In 2025, several provinces, including British Columbia, Nova Scotia, and Ontario, have implemented annual minimum wage increases based on inflation metrics such as the Consumer Price Index (CPI).

How To Stay Compliant When Hiring in Canada With Playroll

Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:

 
• Scale Your Global Team: Legally hire and onboard employees in 180+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
 
• Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
 
• Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.