OTTAWA – In Budget 2021, the Government of Canada proposed to establish a federal minimum wage of $15 per hour, rising with inflation. Today, the Government is announcing that this important change will come into effect on December 29, 2021, following Royal Assent to Budget Implementation Act, 2021, No. 1. The Government says changes will affect workers in the federally regulated private sector and represent an important step towards reducing poverty and inequality.
A freestanding federal minimum wage was recommended by the Expert Panel on Modern Federal Labour Standards in 2019. It also aligns with recent changes that ensure employees in the federally regulated private sector have a robust and modern set of labour standards that reflect the realities of 21st century workplaces. The Government of Canada says unions and labour groups have also played an important part in raising awareness about the importance of such measures, which will help improve the lives of low-wage workers and their families.
“Every worker deserves dignity and honest pay for a hard day’s work. Our Government has moved forward with a $15 per hour federal minimum wage because we know that it is a powerful tool when it comes to fighting poverty and improving the well-being of lower-income families and communities as a whole. Thousands of hard-working Canadians will see their incomes rise to at least $15 per hour as a result of this change, helping them with things like groceries, rent, sports or extracurricular activities for their kids.”– Minister of Labour, Filomena Tassi
The federally regulated private sector includes industries such as interprovincial and international transportation, telecommunications, banking, uranium mining, most federal Crown corporations, grain services and Indigenous band councils.