Canada is preparing for new minimum wage increases in 2026, affecting federally regulated workers and employees in 4 provinces and 1 territory. While inflation has eased compared to recent years, cost-of-living pressures remain elevated across various sectors.
It is anticipated that new minimum hourly wages in Canada and several provinces will take effect in or after the first quarter of 2026. These changes are based on historical patterns, legislated formulas, and confirmed schedules, providing relief for workers and indicating another year of payroll planning for employers.
What Is Minimum Wage In Canada
Minimum wage in Canada is the lowest hourly pay rate that employers must legally pay employees. It serves as a wage floor to prevent extremely low pay and ensure a basic standard of living. Canada has both a federal minimum wage set by the Government of Canada and provincial/territorial minimum hourly wages set by individual governments.
New Minimum Wage In Canada For Federally Regulated Sectors
The federal minimum wage in Canada is adjusted annually based on the Consumer Price Index. The current rate is $17.75 per hour, effective April 1, 2026, and will increase to $18.10 per hour, based on 2% CPI indexation.
Minimum Wage Updates in Nova Scotia
Nova Scotia has seen significant minimum wage increases recently due to a formula linking raises to the national CPI plus 1%. The current rate is $16.50 per hour, and it will rise to $16.75 per hour on April 1, 2026, and $17.00 per hour on October 1, 2026.
Prince Edward Island’s Minimum Wage
Prince Edward Island is gradually increasing its minimum wage, with the current rate at $16.50 per hour. This rate will rise to $17 per hour on April 1, 2026, as recommended by the Employment Standards Board.
New Brunswick’s Expected Wage Adjustment
New Brunswick adjusts its minimum hourly wage annually based on changes in the Consumer Price Index. The current rate is $15.65 per hour, and an estimated increase to $15.30 per hour is expected on April 1, 2026.
Minimum Wage Changes in Newfoundland and Labrador
Newfoundland and Labrador follows an indexed approach, with the current rate at $16.00 per hour. An expected increase to $16.32 per hour is based on a 2% inflation indexation.
Yukon’s Minimum Wage Increase
Yukon has one of the highest minimum hourly wages in Canada, currently at $17.94 per hour. It will increase to $18.37 per hour based on a 2.4% inflation rate in Whitehorse.
