Minimum Wage In Canada (2021)

The minimum wage is the minimum hourly wage rate an employer lawfully pays an employee. Virtually all employees qualify for a minimum wage, be it working part-time, full-time, paid on an hourly rate, casual employees, commission piece rate, salary, or a flat rate.

The idea behind adopting the lowest hourly wage for Canadian workers was born to primarily protect non-unionized employees, children, and women. That’s not all; adopting a minimum hourly pay was also to help fight against poverty and increase the standard of living for these employees. However, counter-arguments were made that putting a ground on earnings may heighten unemployment rates for low-skilled laborers across Canada.

The minimum wage rates and regulations eventually came to act in British Columbia and Manitoba in 1918. Quebec, Nova Scotia, Saskatchewan, and Ontario then came on board in 1920. Other territories and provinces eventually followed suit in successive years. Eventually, the final minimum wage law was passed in 1960 in Prince Edward Island.

In Canada today, minimum wages vary from one territory and province to the next. Each province has its labor regulations that define the working conditions: employee rights and minimum wage. The provinces also have different regulations concerning overtime rules, trade unions, the minimum age to work, and more.

In this article, we’ll be discussing the current minimum wage rate across the three territories and ten provinces in Canada. This article also gives prominence to exceptions to taxes and minimum wage across Canada while discussing how to calculate the minimum wage.

minimum wage in canada

Table Of Contents

Ontario’s Minimum Wage In 2021

With an approximate population of more than 14 million citizens (according to Statistics Canada), Ontario ranks top of the most populous provinces in Canada. Ontario also has the highest Gross Domestic Product (GDP) among all other provinces. Well, this is quite expected, given Ontario is the primary manufacturing hub within the country.

Presently, employees in Ontario earn a minimum wage rate of $14.25 per hour. However, the minimum wage rate is expected to increase starting from October 1st, 2021. Employees across Ontario are expected to start earning $14.35 per hour.

This rate is established on the Ontario Consumer Price Index. Minimum wage rates in Ontario, Canada, are bound to the Ontario Consumer Price Index.

History Of Ontario Minimum Wage

Over the last ten years, Ontario’s minimum wage rate has seen an increase of up to 78.12%. The updates are as follows;

  • February 1, 2007: $8.00

  • March 31, 2008: $8.75

  • March 31, 2009: $9.50

  • March 31, 2010: $10.25

  • June 1, 2014: $11.00

  • October 1, 2015: $11.25

  • October 1, 2016: $11.40

  • October 1, 2017: $11.60

  • October 1, 2018: $14.00

  • October 1, 2020: $14.25

Exemptions To Minimum Wage in Ontario

There are some exceptions to the Ontario minimum wage rate as not all employees follow the public rate.

Students in Ontario below 18 years who work less than 28 hours every week earn $13.40 per hour as minimum wage. Homeworkers earn $15.70 every hour, and Liquor Servers earn a minimum wage of $12.45 every hour.

Wilderness guides, fishing guides, and hunters also earn a minimum wage different from the general rate. Employers who also provide rooms for their employees can estimate certain amounts from employees’ rates to have been reimbursed as wages.

Alberta’s Minimum Wage in 2021

According to Statistics Canada, with an approximate population of more than 4 million citizens, Alberta has the fourth-largest population in Canada. With significant investment in oil and gas, tourism, and agricultural industry, Alberta has the third-largest Gross Domestic Product (GDP) among other provinces.

Alberta pays one of the highest minimum wages in Canada, offering $15.00 per hour to employees. In the space of three years (2015 – 2018), the previous Alberta NDP government increased the minimum wage from $10.20 per hour to $15.00 per hour.

History of Alberta Minimum Wage

Over the last ten years, Alberta’s minimum wage rate has seen an increase of up to 59.57%. The updates are as follows;

  • September 1, 2011: $9.40

  • September 1, 2012: $9.75

  • September 1, 2013: $9.95

  • September 1, 2014: $10.20

  • October 1, 2015: $11.20

  • October 1, 2016: $12.20

  • October 1, 2017: $13.60

  • October 1, 2018: $15

Exemptions to Minimum Wage in Alberta

While every employer must pay the public minimum wage of $15 per hour to employees, the rule has specific exceptions.

In Ontario, students below 18 years who work less than 28 hours every week earn a minimum wage of $13.00 each hour. Employers are required to pay salespersons a minimum of $598 every week. And a minimum salary of $2,848 for domestic workers who reside with their employer.

Employers who offer meals and rooms to employees can deduct a maximum of $4.41 for each lodge night and $3.55 for every meal. For commission-based or incentive-based pay, employers must pay a wage that meets the minimum wage for every hour worked.

Some vocations are also exempted from the general minimum wage. These occupations include post-secondary academic staff, specific students in work experience, real estate brokers, securities salespersons, extras in video production, and municipal police service members.

Manitoba’s Minimum Wage in 2021

Manitoba is the fifth populous province in Canada, with approximately more than one million citizens. The Manitoba province ranks sixth on the largest Gross Domestic Product (GDP) list with significant investments in hydroelectricity, agriculture, manufacturing, and natural resources.

Manitoba offers one of the lowest minimum wages in Canada at $11.90 each hour. However, the minimum wage will be increased to $11.95 per hour on October 1st, 2021. This increase in the minimum wage is based on Manitoba’s Consumer Price Index.

History of Manitoba Minimum Wage

Over the last ten years, Alberta’s minimum wage rate has seen an increase of up to 25.26%. The updates are as follows;

  • October 1, 2010: $9.50

  • October 1, 2011: $10.00

  • October 1, 2012: $10.25

  • October 1, 2013: $10.45

  • October 1, 2014: $10.70

  • October 1, 2015: $11.00

  • October 1, 2017: $11.15

  • October 1, 2018: $11.35

  • October 1, 2019: $11.65

  • October 1, 2020: $11.90 (current)

Exemptions to Minimum Wage in Manitoba

The $11.90 per hour minimum wage pertains to all workers, irrespective of their age, in the Manitoba province. However, there are some exceptions.

The minimum wage applicable to the heavy construction industry is quite different. Employees in the industry earn a distinct minimum wage depending on the classification of their job. There are ten classifications of jobs available in the heavy construction sector, with minimum wages ranging from $12.75 per hour to $25.25 per hour.

Enumerators or election officials assigned under The Elections Act and domestic workers who work less than twelve hours every week are exempted from minimum wage. Commission salespeople and flat-rate mechanics that paid via incentives must receive the minimum wage. 

Employers who provide meals and rooms for their employees can estimate up to a certain amount paid as wages.

minimum wage in canada

British Columbia’s Minimum Wage in 2021

British Columbia is the third populous province in Canada, with more than five million citizens. With main industries in aerospace, mining, information technology, forestry, agriculture, and tourism, British Columbia is the fourth-largest economy among other provinces in the country.

Presently, British Columbia offers a minimum wage of $15.20 every hour. The province had made a special plan to increase the minimum wage from $12.65 in 2018 to $15.20 by June 1st, 2021. And this plan has been followed strictly.

History of British Columbia Minimum Wage

In the last ten years, British Columbia’s minimum wage rate has seen an increase of up to 73.7%. The updates are as follows;

  • May 1, 2011: $8.75

  • November 1, 2011: $9.50

  • May 1, 2012: $10.25

  • September 15, 2015: $10.45

  • September 15, 2016: $10.85

  • September 15, 2017: $11.35

  • June 1, 2018: $12.65

  • June 1, 2019: $13.85

  • June 1, 2020: $14.60

  • June 1, 2021: $15.20 (current)

Exemptions to Minimum Wage in British Columbia

There are some exceptions to the British Columbia minimum wage rate as not all employees follow the general rate. For instance, liquor servers earn a minimum wage of $15.20 per hour, including gratuities or tips.

Live-in camp leaders also earn a minimum wage of $121.65 per day. Live-in-home support workers also earn a minimum wage of $113.50 per day. On the other hand, the minimum wage earned by resident caretakers every month is dependent on the number of suites available in their apartments.

Saskatchewan’s Minimum Wage in 2021

Saskatchewan ranks sixth on the list of the most populous provinces in Canada, with more than one million citizens. Saskatchewan is vastly dependent on agriculture, oil and gas exploration, services industry, and mining.

Presently, the minimum wage for employees in

Saskatchewan is $11.45 per hour. This present rate is based on Saskatchewan’s Consumer Price Index. However, a wage increase is to happen very soon, which will see employees earn $11.81 every hour. Among all provinces in Canada, Saskatchewan’s minimum wage is presently the lowest.

History of Saskatchewan Minimum Wage

In the last ten years, Saskatchewan’s minimum wage rate has seen an increase of up to 24.31%. The updates are as follows;

  • September 1, 2011: $9.50

  • December 1, 2012: $10.00

  • October 1, 2014: $10.20

  • October 1, 2015: $10.50

  • October 1, 2016: $10.72

  • October 1, 2017: $10.96

  • October 1, 2018: $11.06

  • October 1, 2019: $11.32

  • October 1, 2020: $11.45

  • October 1, 2021: $11.81 (expected)

Exemptions to Minimum Wage in Saskatchewan

A majority of employees in Saskatchewan earn the minimum wage of $11.45 per hour. However, there are some exceptions to this general rate. These exceptions include; 

  • Come-in caregivers who are exempted from the general minimum wage

  • In the first 8 hours of working, live-in care providers must earn the general minimum wage. However, employers can deduct $250 for meals and room provided

  • Live-in domestic workers must be paid the minimum wage for the first 8 hours every day. However, employers can deduct $250 for meals and room provided

Quebec’s Minimum Wage in 2021

With an approximate population of more than eight million citizens, Quebec ranks second on the list of the most populous province in Canada. The Quebec province has significant investments in the service and manufacturing sector, making it the second-biggest economy in Canada.

Presently, the minimum wage for employees in Quebec is $13.50 per hour. However, employers who earn tips get a minimum wage of $10.80 per hour. Strawberry and raspberry pickers earn a minimum wage of $1.07 per kg and $4.01 per kg, respectively.

History of Quebec Minimum Wage

In the previous five years, Quebec’s minimum wage rate has seen an increase of up to 25.5%. The updates are as follows;

  • May 1, 2016 $10.75  

  • May 1, 2017 $11.25

  • May 1, 2018 $12.00

  • May 1, 2019 $12.50

  • May 1, 2020 $13.10

  • May 1, 2021 $13.50  

Exemptions to Minimum Wage in Quebec

Employees who earn on commissions or based on the yield earn the minimum wage specific to their category.

In the case of strawberry and raspberry pickers, they get extras on their wages when the harvest is impacted by conditions more than their control. In situations like this, they get to earn the public minimum wage.

When employers offer accommodation and meals to employees, they may deduct a certain amount from their wages.

In some cases, some workers are completely exempted from the general minimum wage to respect labor standards. Self-employed workers, students working in a non-profit organization, the Canadian Armed Forces employees, and those in prison are employees exempted from the Act.

Nova Scotia’s Minimum Wage in 2021

Nova Scotia has an approximate population of more than nine hundred thousand citizens ranking as Canada’s seventh most populous province. With major investment in agriculture, tourism, fisheries, aquaculture, forestry, and manufacturing, Nova Scotia’s economy ranks seventh among other provinces in Canada.

Today, employees in Nova Scotia earn a minimum wage of $12.95 per hour. This minimum wage was just implemented on April 1st, 2021.

History of Nova Scotia Minimum Wage

Over the last ten years, Nova Scotia’s minimum wage rate has seen an increase of up to 27.5%. The updates are as follows;

  • April 1, 2012: $10.15

  • April 1, 2013: $10.30

  • April 1, 2014: $10.40

  • April 1, 2015: $10.60

  • April 1, 2016: $10.70

  • April 1, 2017: $10.85

  • April 1, 2018: $11.00

  • April 1, 2019: $11.55

  • April 1, 2020: $12.55

  • April 1, 2021: $12.95

minimum wage in canada

Exemptions to Minimum Wage in Nova Scotia

Insurance agents, car and real estate salespeople, employees at summer camp or non-profit playgrounds, apprentices, some farmworkers, domestic workers, and employees on a fishing boat are exempted from the minimum wage in Nova Scotia.

When employers lower employees’ hourly rates and fall under the minimum wage, the uniform cost must not be deducted. However, the cost of dry cleaning uniforms made from heavy materials can be subtracted even if the wage goes under the minimum wage.

Employers who also offer accommodation and meals to employees may subtract the following from employees’ wages; 

  • $55.55 for board only each week

  • $3.65 for a single meal

  • $15.45 for accommodation once a week

  • $68.20 for boarding and lodging each week

New Brunswick Minimum Wage in 2021

New Brunswick has an approximate population of more than seven hundred thousand citizens, making it the most populous province in Canada. New Brunswick’s economy also ranks ninth among other provinces in Canada, having major investments in forestry, agriculture, fishing, and mining.

Employees in New Brunswick earn a minimum wage of $11.75 every hour. The minimum wage of New Brunswick is indexed against its Consumer Price Index.

The four Atlantic regions (Newfoundland, Prince Edward Island, Nova Scotia, Labrador, and New Brunswick) affect an increase in their minimum wage every April 1st each year.

History of New Brunswick Minimum Wage

In the previous ten years, New Brunswick’s minimum wage rate has seen an increase of up to 30.5%. The updates are as follows;

  • September 1, 2010: $9.00

  • April 1, 2011: $9.50

  • April 1, 2012: $10.00

  • December 31 2014: $10.30

  • April 1, 2016: $10.65

  • April 1, 2017: $11.00

  • April 1, 2018: $11.25

  • April 1, 2019: $11.50

  • April 1, 2020: $11.70

  • April 1, 2021: $11.75

Exemptions to Minimum Wage in New Brunswick

Employees in crown building structures earn a different minimum wage than the general rate.

On April 1st, 2019, the minimum wage an employee documented in Column I of the Schedule A category cab earn is more than the public minimum wage.

Program staff and counselors at residential summer camps will earn about $501.60 per week from April 1st, 2021, to March 31st, 2022. The cost of accommodation and meals is not deducted from this wage.

Newfoundland and Labrador’s Minimum Wage in 2021

Newfoundland and Labrador (NL) are Canada’s ninth most populous province with an approximate population of more than five hundred thousand citizens. Service industries and natural resources largely drive Newfoundland and Labrador’s economy.

As of April 1st, 2021, employees in Newfoundland and Labrador earn a minimum wage of $12.50 each hour. To increase the minimum wage to $12.65 per hour, plans are on the ground starting from October 1st, 2021.

History of Newfoundland and Labrador Minimum Wage

In the last ten years, NL’s minimum wage rate has seen an increase of up to 25%. The updates are as follows;

  • July 1, 2010: $10.00

  • October 1, 2014: $10.25

  • October 1, 2015: $10.50

  • April 1, 2017: $10.75

  • October 1, 2017: $11.00

  • April 1, 2018: $11.15

  • April 1, 2019: $11.40

  • April 1, 2020: $11.65

  • October 1, 2020: $12.15

  • April 1, 2021: $12.50

Exemptions to Minimum Wage in Newfoundland and Labrador

There are some exceptions to the British Columbia minimum wage rate as not all employees follow the general rate. For instance, workers who raise livestock, plant, cultivate, and harvest farm produce are exempted from the overtime wage rates. 

Live-in babysitters and housekeepers who have an agreement with their employer to get some time off work than the hours worked more than forty hours each week are also exempted from the overtime wage rates.

Prince Edward Island’s Minimum Wage in 2021

Prince Edward Island (PEI) is the least populous province in Canada, with an approximate population of a little over a hundred thousand citizens. It is Gross Domestic Product (GDP) as of 2017 is around $6.6 billion, which sees Prince Edward Island tenth on the list of the largest economy in Canada. Prince Edward Island (PEI) has major industries in tourism, fisheries, and agriculture.

Today, employees in Prince Edward Island (PEI) earn a minimum wage of $13 per hour.

History of Prince Edward Island Minimum Wage

In the last seven years, PEI’s minimum wage rate has seen an increase of up to 27.4%. The updates are as follows;

  • June 1, 2014: $10.20

  • October 1. 2014: $10.35

  • July 1, 2015: $10.50

  • June 1, 2016: $10.75

  • October 1, 2016: $11.00

  • April 1, 2017: $11.25

  • April 1, 2018: $11.55

  • April 1, 2019: $12.25

  • April 1, 2020: $12.85

  • April 1, 2021: $13.00

Exemptions to Minimum Wage in Prince Edward Island

Employers who offer accommodation and boarding to employees can subtract the following payments from their employees’ wages:

  • Board only: $49.50 each week

  • Single meals: $4.25 per meal

  • Lodging only: $27.50 each week

  • Board and lodging: $61.60 each week

The Northwest Territories’ Minimum Wage in 2021

Among the three territories present in Canada, the Northwest Territories (NWT) are the most populated, with forty-four thousand citizens. The Northwest Territories also has the most Gross Domestic Product among the three territories in Canada, $108,065. The economy of the Northwest Territories is vastly resource-based

Employees in the Northwest Territories presently earn a minimum wage of $15.20 per hour. This minimum wage took effect on September 1st, 2021.

History of the Northwest Territories Minimum Wage

In the last ten years, PEI’s minimum wage rate has seen an increase of up to 68.8%. The updates are as follows;

  • April 1, 2010: $9.00

  • April 1, 2011: $10.00

  • June 1, 2015: $12.50

  • April 1, 2018: $13.46

  • September 1, 2021: $15.20

Exemptions to Minimum Wage in the Northwest Territories

Students who work as part of their studies who are in a work program are exempted from the

NWT’s Employment Standards Act.

Employers who provide board to their employees can also deduct a maximum of $0.65 on every meal. If they offer accommodation, they can deduct a maximum of $0.80 each day from their minimum wage.

Yukon’s Minimum Wage in 2021

The Yukon Territory has a population of more than forty thousand citizens. Yukon’s economy is greatly dependent on tourism and mining.

Employees in Yukon earn a minimum wage of $13.85 per hour as of April 1st, 2021. The minimum wage of employees in Yukon is established on the Consumer Price Index, its effect on the economy, and other jurisdictions.

History of Yukon Minimum Wage

In the last ten years, Yukon’s minimum wage rate has seen an increase of up to 34.4%. The updates are as follows;

  • May 1, 2012: $10.30

  • April 1, 2013: $10.54

  • April 1, 2014: $10.72

  • April 1, 2015: $10.86

  • April 1, 2016: $11.07

  • April 1, 2017: $11.32

  • April 1, 2018: $11.51

  • April 1, 2019: $12.71

  • April 1, 2020: $13.71

  • April 1, 2021: $13.85

Exemptions to Minimum Wage in the Yukon

On public work contracts, employees of the Government of Yukon are set in a fair wage schedule different from the general rate. This schedule consists of several categories with specific wages per hour.

For instance;

  • Category A (electricians and carpenters) earn a minimum wage of $35.26 each hour.

  • Category B (routers and blasters) earn a minimum wage of $31.61 each hour.

  • Category C (truck drivers and surveyor’s helpers) earn a minimum wage of $28.04 each hour.

  • Category D (laborer and flag person) earns a minimum wage of $25.44 each hour.

Nunavut’s Minimum Wage in 2021

Nunavut by landmass is the biggest territory in Canada but has the lowest population among the three territories. Nunavut has an approximate population of about thirty-nine thousand citizens.

Nunavut’s economy is heavily reliant on tourism, fisheries, and natural resources. Employees in Nunavut earn a minimum wage of $16 per hour – the highest minimum wage in the whole of Canada. This is an increase of $3 from the prior rate of $13 each hour.

History of Nunavut Minimum Wage

In the last ten years, Yukon’s minimum wage rate has seen an increase of up to 31%. The updates are as follows;

  • January 1, 2011: $11

  • March 2, 2016: $13

  • April 1, 2020: $16

Exemptions to Minimum Wage in Nunavut

While every employer must pay the general minimum wage of $16 per hour to employees, this rule has some exceptions.

The minimum wage does not apply to individuals and trappers operating in commercial fisheries.

When employers provide lodging and/or meals to employees, employers can subtract a maximum of $0.80 and $0.65 for every lodging and meal each day, respectively.

minimum wage in canada

Summary Of Minimum Wages In Canada 2021

Territory/Province           

Minimum Wage

Date of Effect

British Columbia

$15.20 per hour

June 1st, 2021

Alberta

$15.00 per hour

October 1st, 2018

Manitoba

$11.90 per hour

October 1st, 2020

Newfoundland and Labrador

$12.15 per hour

October 1st, 2020

New Brunswick

$11.75 per hour

April 1st, 2021

Nova Scotia

$12.95 per hour

April 1st, 2021

Ontario

$14.25 per hour

October 1st,  2020

Nunavut

$16.00 per hour

April 1st, 2020

Prince Edward Island

$13.00 per hour

April 1st, 2021

Saskatchewan

$11.45 per hour

October 1st, 2020

Quebec

$13.50 per hour

October 1st, 2020

Yukon

$13.85 per hour

April 1st, 2021

Northwest Territories

$13.46 per hour

April 1st, 2020

Minimum Wage Tax Rate

The Canadian government expects every citizen who earns an income to pay an income tax each year. This applies to both the federal, provincial levels. However, many Canadians don’t understand how income taxes work, which tax bracket they fall into, and how to calculate income tax.

Canadian Income Tax 101

The Canadian authority makes use of a progressive system of income tax. Simply put, the last income you earn at the end of a year is taxed at a higher rate than your first income. An exemption to this is if your income is quite low. The tax rates are categorized into several tax brackets, and each one covers a distinct income range. Please note that tax rates differ year to year because the brackets are revised to account for inflation at the end.

In Canada, income tax is charged on total income, which varies based on the number of hours worked during the year. The income tax is a combination of both provincial and federal tax rates.

2021 Federal Tax Bracket Rates

  • $216,512 and above: 33%

  • $151,979 to $216,511: 29%

  • $98,041 to $151,978: 26%

  • $49,021 to $98,040: 20.50%

  • Up to $49,020 of taxable income: 15%

minimum wage in canada

2021 Tax Bracket Rates by Province

Employees across Canada are also required to pay income tax to their territories and provinces alongside federal returns. As you may expect, these income taxes vary from one province or territory to the other.

Ontario

  • Up to $45,142 05%

  • $45,143 to $90,287 15%

  • $90,288 to $150,000 16%

  • $150,001 to $220,000 16%

  • $220,001 and above 16%

Alberta

  • Up to $131,220 10%

  • $131,221 to $157,464 12%

  • $157,465 to $209,952 13%

  • $209,953 to $314,928 14%

  • $314,929 and above 15%

British Columbia

  • Up to $42,184  06%

  • $42,185 to $84,369 70%

  • $84,370 to $96,866 50%

  • $96,867 to $117,623 29%

  • $117,624 to $159,483 70%

  • $159,484 to $222,420 80%

  • $222,421 and above 5%

Manitoba

  • Up to $33,723  80%

  • $33,724 to $72,885 75%

  • $72,886 and above 40%

Saskatchewan

  • Up to $45,677  50%

  • $43,836 to $87,671 82%

  • $87,672 to $142,534 52%

  • $142,535 to $162,383 84%

  • $162,384 and above 30%

Nova Scotia

  • Up to $29,590 79%

  • $29,591 to $59,180 95%

  • $59,181 to $93,000 67%

  • $93,001 to $150,000 50%

  • $150,001 and above 00%

Newfoundland and Labrador

  • Up to $37,929 70%

  • $37,930 to $75,858 50%

  • $75,859 to $135,432 80%

  • $135,433 to $189,604 30%

  • $189,605 and above 30%

Prince Edward Island

  • Up to $31,984 80%

  • $31,985 to $63,969 8%

  • $63,970 and above 70%

Quebec

  • Up to $45,105 15%

  • $45,106 to $90,200 20%

  • $90,201 to $109,755 24%

  • $109,756 and over 75%

2021 Tax Bracket Rates by Territory

Northwest Territories

  • Up to $44,396 90%

  • $44,397 to $88,796 6%

  • $88,797 to $144,362 20%

  • $144,363 and above 05%

Yukon

  • Up to $49,020 40%

  • $49,021 to $98,040. 0)%

  • $98,041 to $151,978 90%

  • $151,979 to $500,000 80%

  • $500,001 and above 00%

Nunavut

  • Up to $46,740 00%

  • $46,741 to $93,480 00%

  • $93,481 to $151,978 00%

  • $151,979 and above 50%

Reducing your Income Tax

Various credits and deductions can reduce your taxable income. For instance, low-income earners (individuals who earn an income under $13,000) will be exempted from federal taxes in 2021.

Every territory and province also has a specific subjective amount that eliminates or reduces regional income tax for their citizens. Several tax credits (non-refundable and refundable) also help to lower your taxes owed or taxable income. These include;

  • Common-law partner or spouse amount

  • Childcare expenses

  • Age amount

  • Eligible medical expenses

  • Education, textbook, and tuition

Acceptable Reductions from Wages

The federal or provincial employment standards legislation allows your employer to deduct a certain amount from your wages. These deductions include;

  • Canada Pension Plan contributions

  • Employer-sponsored pension benefit plan contributions

  • Union dues

  • Income tax

  • Employment Insurance (EI) premiums

  • Health benefits

A judiciary order can also sanction that your earnings be reduced to reimburse for spousal or child support.

There’s a need for you to be careful, though, as some employers try to outsmart employees and claim illegal deductions. For instance, it is illegal for employees to reimburse for the damage and destruction of equipment and properties.  

It is illegal for employers to let employees pay for cash shortage except if one is the only employee with access to the cash or voluntarily approves the deduction.

minimum wage in canada

Frequently Asked Questions

Is it possible that an employer pays less than the minimum wage?

The answer is No. Any employer cannot pay less than the minimum wage that applies to your province. But there are some exceptions to this rule.

Which territory or province has the highest minimum wage?

At the rate of $16.00 per hour, Nunavut offers the highest minimum wage in Canada.

Can you live off on minimum wage in Canada?

Living off on minimum wage or not in Canada largely depends on the territory or province you live in. In most large cities such as Toronto and Vancouver, working 40 hours a week while earning minimum wage will see you earn below the basic standard of living in these cities.

However, earning minimum wage could see you get by just fine in other regions of the country—areas such as Winnipeg and virtually anywhere in Quebec. In the three territories, the standard of living is way higher. Earning minimum wage in these territories would see you barely managing.

Which territory or province has the lowest minimum wage?

At the rate of $11.45 per hour, Saskatchewan offers the highest minimum wage in Canada.

Which province has the highest percentage increase in the minimum wage

Over the last ten years, the Northwest Territories have had the highest percentage increase in the minimum wage. Employees in the Northwest Territories have enjoyed an increase of 68.8% in the last ten years.

Conclusion

Through minimum wage, the Canadian government continues to protect non-unionized workers, students, and women working in various sectors of the economy. The standard of living of these groups continues to improve while the government fights against poverty.

Even though there are exceptions to the minimum wage, the core objective behind adopting the minimum wage system has not been neglected. Today, many employees earning by the hour in every territory and province are legally entitled to some level of compensation. However, this varies from one province or territory to the next.

The question of “whether one can live off on the minimum wage in Canada.” The truth is, in most large cities in the country, that would be impossible, but in other areas, one can have the most basic standard of living with the minimum wage.

Thanks for reading! Please let me know your thoughts and comments below. 

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