Everything you need to know about minimum wage legislation in Canada
Mar 22, 2021Resources
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In Canada, provincial legislation determines that all employees are eligible to receive minimum wage. By definition, it’s the lowest rate at which an employer can legally pay its staff and is not dependent on whether the employee has full-time, part-time or casual employment, or if they’re paid salary, commission, or a flat, piece, or hourly rate.
There are some exceptions for minimum wage. In some jurisdictions, students and servers have their own minimum wages, which are highlighted in a handy unified chart Payworks created (more on that below!) Exceptions are also made to minimum wage requirements if a worker exceeds their normally scheduled hours and qualifies for overtime rates. Like minimum wage, legislation for overtime rates in Canada varies by province and territory. For a comprehensive overview of overtime and more details on why employers should have a strategic plan that clearly defines overtime for their workforce, click here.
The minimum wage rate for employees varies by province and territory, and it’s the employer’s responsibility to ensure they’re adhering to the legislation of their own jurisdiction. The federal rate is for employees who work under federal jurisdiction, i.e. whose workplace employment standards are governed by the Canada Labour Code (CLC). Under the CLC, the minimum wage defaults to the rate of the province in which the work is performed. Employers should also note that minimum wage rates are subject to increases, which are announced by the respective provincial or territorial government for the upcoming year(s).
In search of a consolidated chart that outlines what the minimum wages are across Canada, and which province/territories are expected to change their rates for the upcoming year? Find it in the Payworks Payroll Guide - to download a free copy visit: https://info.payworks.ca/en-ca/payroll-guide-for-canadian-business.
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