As the cost of living in Canada continues to climb, several provinces have raised their minimum wages in 2025, with more increases scheduled for 2026. However, the latest pay adjustments have left many citizens underwhelmed, prompting growing concern over stagnant wage growth—particularly in Alberta, which hasn’t raised its minimum wage since 2019.
With forecasts suggesting slower salary growth in 2026, experts say Canadians should prepare for modest gains at best in the coming year.
What’s Happening With Wages in 2026?
According to wage consultancy firms Gallagher and Normandin Beaudry, average salary increases across Canada are expected to be just 3.1% in 2026, a slight drop from the 3.5% hike seen in 2025. Employers are likely to tighten their salary budgets as they deal with economic uncertainty and inflation fatigue.
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While these projections relate to general salaries, they reflect the broader environment influencing minimum wage policies, which vary by province.
Minimum Wage Increases Already in Effect (October 2025)
As of October 1, 2025, five provinces implemented new minimum wage rates. These changes reflect efforts to keep up with inflation, particularly in service-based sectors such as retail, hospitality, and agriculture, where workers rely on baseline earnings.
| Province | New Minimum Wage | Effective Date |
|---|---|---|
| Ontario | $17.60/hour (General), $16.60 (Students), $19.35 (Homeworkers) | October 1, 2025 |
| Manitoba | $16.00/hour | October 1, 2025 |
| Saskatchewan | $15.35/hour | October 1, 2025 |
| Nova Scotia | $16.50/hour | October 1, 2025 |
| Prince Edward Island | $16.50/hour | October 1, 2025 |
What’s Confirmed for 2026 So Far?
Among all provinces, only Prince Edward Island has officially confirmed a 2026 minimum wage increase, set to $17.00/hour effective from April 1, 2026.
Meanwhile, other jurisdictions are expected to review and potentially adjust their minimum wages ahead of spring 2026.
Full Breakdown: Minimum Wage by Province/Territory (2025–2026)
Here’s a province-by-province breakdown of current rates and next scheduled increases:
| Jurisdiction | Current Minimum Wage | Effective Date | Next Scheduled Change |
|---|---|---|---|
| Federal | $17.75 | April 1, 2025 | April 1, 2026 |
| Nunavut | $19.75 | September 1, 2025 | September 1, 2026 |
| British Columbia | $17.85 | June 1, 2025 | June 1, 2026 |
| Yukon | $17.94 | April 1, 2025 | April 1, 2026 |
| Ontario | $17.60 | October 1, 2025 | October 1, 2026 |
| Northwest Territories | $16.95 | September 1, 2025 | September 1, 2026 |
| Prince Edward Island | $16.50 | October 1, 2025 | April 1, 2026 (to $17.00) |
| Nova Scotia | $16.50 | October 1, 2025 | April 1, 2026 |
| Quebec | $16.10 | May 1, 2025 | May 1, 2026 |
| Manitoba | $16.00 | October 1, 2025 | October 1, 2026 |
| Newfoundland & Labrador | $16.00 | April 1, 2025 | April 1, 2026 |
| New Brunswick | $15.65 | April 1, 2025 | April 1, 2026 |
| Saskatchewan | $15.35 | October 1, 2025 | October 1, 2026 |
| Alberta | $15.00 | June 26, 2019 | No change announced |
Alberta’s Minimum Wage Criticism: Lowest and Stagnant Since 2019
Alberta continues to face heavy criticism for keeping its minimum wage at $15.00/hour, unchanged since 2019. Despite having one of the highest costs of living in Canada—particularly in urban centres like Calgary and Edmonton—the UCP government has not committed to a new increase.
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Critics argue that Alberta’s wage floor has fallen far behind inflation, harming low-income workers and creating greater economic hardship.
Key voices of criticism:
“The minimum wage is supposed to be a floor that holds everybody up, but under the UCP government, it’s become an anchor that is dragging everybody down.”
— Gil McGowan, President, Alberta Federation of Labour
“Clearly, their idea of paying people poorly to create jobs isn’t working.” — Naheed Nenshi, Alberta NDP Leader and Former Calgary Mayor
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Why Is the Minimum Wage Increase Important?
The rise in Canada’s minimum wage is not just about take-home pay—it’s tied directly to economic stability, equity, and workforce retention. Let’s look at the broader implications.
Benefits for Workers
- Maintains purchasing power against inflation
- Allows workers to afford basic necessities such as food, shelter, and transport
- Reduces poverty and income inequality
- Supports financial independence and household security
Benefits for the Economy
- Increases consumer spending by putting more money into the hands of low-income workers
- Improves employee retention and productivity
- Helps address labour shortages, especially in essential service sectors
- Contributes to local economic growth
Which Sectors Are Most Affected?
The increase in minimum wages has a significant impact on service-heavy industries, particularly:
- Retail and Grocery
- Hospitality and Tourism
- Food Services
- Agriculture and Farm Labour
- Childcare and Cleaning Services
These sectors typically rely on hourly wage workers, and the minimum wage serves as the baseline for employment contracts
What Employers Should Know
Starting October 2025, businesses in affected provinces must ensure they adjust pay structures to meet the new minimum wage standards. Failure to comply may result in:
- Legal penalties and fines
- Employee grievances or complaints
- Brand reputation damage, especially in community-focused industries
Employers are also encouraged to update payroll systems, inform HR teams, and notify employees in writing about upcoming changes.
Slow Growth Forecast for 2026 Salary Increases
In addition to province-level minimum wage hikes, Gallagher and Normandin Beaudry have projected a modest 3.1% salary increase for 2026. This is down from 3.5% in 2025, suggesting employers will likely limit wage growth due to economic uncertainty.
This trend is expected to affect new salary negotiations, annual appraisals, and employee retention strategies across industries
Summary Table: Canada’s Minimum Wage Overview (2025–2026)
| Region | 2025 Wage | 2026 Confirmed Wage | Next Increase Date |
|---|---|---|---|
| Ontario | $17.60 | TBD | October 1, 2026 |
| Alberta | $15.00 | No Change | N/A |
| Quebec | $16.10 | TBD | May 1, 2026 |
| Nova Scotia | $16.50 | TBD | April 1, 2026 |
| PEI | $16.50 | $17.00 | April 1, 2026 |
| Federal Workers | $17.75 | TBD | April 1, 2026 |
| Nunavut | $19.75 | TBD | September 1, 2026 |
