The Government of Canada announced Friday that the federal minimum wage will be reduced to $ 15 an hour on December 29.
Labor Minister Seamus O’Regan Jr. says the change will affect federally regulated private sector workers.
Most of these employees work in non-road transport, road transport, telecommunications, broadcasting, postal services and banking services.
For those who work in provinces or territories where the minimum wage is higher, the minimum wage will apply.
The minister’s press release added that the changes made to the Canada Labor Code to establish a new federal minimum wage also ensure that it will increase in line with inflation. Starting in 2022, each year, on April 1, the federal minimum wage will be adjusted based on the previous year’s Consumer Price Index (CPI) published by Statistics Canada.
The Government of Canada estimates that 26,000 federally regulated private sector employees earn less than $ 15 an hour and will benefit from the new rate. Most of them work in Ontario and Quebec.
It is estimated that 59% of them are men and 41% are women.
In Budget 2021, the Government of Canada proposed to set the federal minimum wage at $ 15 an hour.