In a press release by the Employment and Social Development Canada on June 30, 2021, the federal minimum wage of $15 per hour will come into effect on December 29, 2021
In Budget 2021, a federal minimum wage of $15 per hour, rising with inflation was proposed by the Government of Canada. 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 changes will affect workers in the federally regulated private sector and represent an important step towards reducing poverty and inequality. Federally regulated private sectors include:
- air transportation, including airlines, airports, aerodromes and aircraft operations
- banks, including authorized foreign banks
- grain elevators, feed and seed mills, feed warehouses and grain-seed cleaning plants
- first Nations band councils (including certain community services on reserve)
- most federal Crown corporations, for example, Canada Post Corporation
- port services, marine shipping, ferries, tunnels, canals, bridges and pipelines (oil and gas) that cross international or provincial borders
- radio and television broadcasting
- railways that cross provincial or international borders and some short-line railways
- road transportation services, including trucks and buses, that cross provincial or international borders
- telecommunications, such as, telephone, Internet, telegraph and cable systems
- uranium mining and processing and atomic energy
- any business that is vital, essential or integral to the operation of one of the above activities
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A freestanding federal minimum wage was recommended by the Expert Panel on Modern Federal Labour Standards in 2019. Unions and labour groups have 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.
“As we look to Canada’s economic recovery from this pandemic, this is an important step forward to ensure that we build back better.” The press release says.