Toronto/April 9, 2025 – In a significant move to counter rising inflation and support workers, the Canadian government has increased the federal minimum wage by 2.4 per cent, raising it from CAD $17.30 to $17.75 per hour. The change, which came into effect on April 1, 2025, is aligned with Canada’s annual Consumer Price Index (CPI) adjustment and is set to benefit thousands of workers—including a growing number of Indian immigrants and international students.
This wage hike will directly impact around 26,000 employees working in federally regulated sectors such as banking, interprovincial transportation, and telecommunications. Canadian Minister of Employment, Workforce Development and Labour, Steven MacKinnon, emphasized the government’s commitment to reducing income inequality and ensuring economic fairness.
“The federal minimum wage brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board,” said MacKinnon. “Today’s increase brings us one step closer to building a more fair economy.”
Positive News for Indian Community
For the Indian diaspora in Canada—now one of the country’s largest and fastest-growing immigrant groups—the increase comes as a welcome relief amid soaring living expenses. According to Statistics Canada's 2021 Census, 3.7 per cent of the Canadian population, or approximately 1.3 million individuals, reported Indian ethnic origin.
The wage adjustment is particularly impactful for Indian international students and new immigrants who often rely on part-time jobs or internships in federally regulated sectors to supplement their income. As tuition fees and accommodation costs continue to rise, the additional income will help ease financial stress for many.
Employers have been instructed to update their payroll systems accordingly to ensure compliance, with the new rate also applicable to interns and part-time workers.
Provincial Wage Increases Also Announced
In addition to the federal adjustment, several provinces have also announced hikes in their minimum wage:
Nova Scotia: From $15.30 to $15.65 per hour
Newfoundland and Labrador: From $15.60 to $16.00 per hour
New Brunswick: From $15.30 to $15.65 per hour
Yukon: From $17.59 to $17.94 per hour
These increases are designed to help workers manage the rising cost of living, a key issue in the lead-up to Canada’s federal elections in 2025.
As Canada continues to position itself as a top destination for education and skilled migration, such steps reinforce its commitment to worker welfare and economic inclusion—offering renewed hope and opportunity for its diverse immigrant population, including the vibrant Indian community.
