The minimum wages and average salaries in Canada have changed in 2025, indicating the government’s effort to balance living costs with fair compensation. In this blog post, we will discuss the salary shifts of Canada in recent years, and especially in 2025.
Minimum Wage in Canada
In 2025, Canada’s federal minimum wage, with a 2.4% rise, increased to 17.75 CAD per hour. However, the minimum wage varies across different provinces and territories; some jurisdictions set higher rates than the federal standard. For example, Nunavut has the highest minimum wage at 19.00 CAD per hour.
Here is a table showing Canada’s Federal minimum wage over the past 5 years according to the official website of Government of Canada.
| Year | Federal Minimum Wage (CAD/hour) |
| 2021 | 15.00 |
| 2022 | 15.55 |
| 2023 | 16.65 |
| 2024 | 17.30 |
| 2025 | 17.75 |
Highest Minimum Wage in Canada
The federal minimum wage is adjusted every year in some provinces and territories based on the Consumer Price Index or CPI. The CPI measures inflation, or the change in the cost of living over time. This way, the government ensures that workers can meet their basic needs.
According to Retail Council of Canada website, as of 2025, Nunavut maintains the highest minimum wage in Canada at 19.00 CAD per hour, followed by Yukon at 17.94 CAD per hour, indicating the economic challenges of these territories, including the high cost of living due to their remote location and limited access to goods and services. British Columbia ranks third with its minimum wage set at 17.58 CAD per hour.
Is the Minimum Wage in Canada Enough to Live on?
It depends on where you live, your household size, and your expenses. While in major cities such as Toronto, the minimum wage often does not cover all basic needs, especially if you are supporting a family, in smaller towns or regions with a lower cost of living, it is more manageable for a single person to get by on minimum wage.
Although the Canadian government is trying to protect workers by setting the minimum wage, it is not always enough for a comfortable and secure life. If you are planning to move to Canada or bring your family to Canada, it is important to evaluate your costs and your expected wage.
FAQ
What is the average salary in Canada in 2025?
The average annual salary in Canada in 2025 for full-time workers is approximately 67,100 CAD, with a 4% increase from the previous year.
How much is the minimum wage increase in Canada in April 2025?
The federal minimum wage in 2025 had a 2.4% rise compared to 2024. It increased to 17.75 CAD per hour, up from 17.30 CAD per hour in 2024.
How much does the salary increase per year in Canada?
The average annual salary increase is approximately 3.5%. However, salary increases can vary significantly across sectors and regions, ranging from 2.8% to 4.3%.
Is a 20% salary increase good?
A 20% salary increase is not common in Canada and is considered a very good raise. Most annual raises in Canada tend to range between 2% and 5%.
Which province has the highest minimum wage in Canada?
Nunavut has the highest minimum wage in Canada at 19:00 CAD per hour, followed by Yukon at 17.94 CAD per hour. British Columbia is the third with a minimum wage of 17.58 CAD per hour.
