Canada’s minimum wage was raised in 2025, but Alberta is less fortunate.
On October 1, 2025, five provinces decided to increase their minimum wages, while Alberta is stuck at $15. The stagnant wages of Alberta in the face of Alberta’s increases caused an aberration in provinces due to inflation. This gap impacts workers’ lives and the very existence of small businesses.
New Minimum Wage Rates Across Canada
The wage increases in Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island were inflationary measures linked to changes in the consumer price index (CPI) to ensure that wages do not fall short against the cost of living.
Which provinces increased wages by how much?
Ontario is leading with $17.60 wages, while Nova Scotia and Prince Edward Island raised it to $16.50. Manitoba stands at $16, while Saskatchewan stands at $15.35.
The only province where the lowest rate of pay still holds is Alberta, with no change at $15.
Past 2025 Increase
British Columbia, Quebec, New Brunswick, and Newfoundland and Labrador increased wages at the beginning of this year. Many provinces are now adopting a CPI-based increase once a year so that income will not lose its real value due to inflation.
Reasons for Alberta Lags
Alberta has not changed its minimum wage since October 2018. The real value of $15 per hour, owing to inflation, has eroded to such an extent that today, Alberta workers have fallen far behind their counterparts in the rest of the country.
Consequences of Workers
Wage increases provide relief to workers, particularly in provinces with high rents and prices for essential goods. The increase allows for the purchase of the essentials needed for daily living, thereby alleviating some financial burdens.
Consequences for Businesses
Increasing wage costs for small businesses and sometimes necessitating the cutting of employee hours or raising prices. The upside, however, includes lower turnover rates and greater local spending in the long run.
Comprehensive National Comparison
From both the first and the 2025 wage increase implemented in October, most provinces in Canada are now at $16 and above. Wages in the cost-of-living areas are much higher, while Alberta now stands as the only province stuck at $15.
Conclusion: Widening Gap and Pressure
The October 2025 wage increase has drawn even sharper attention to the economic disparity amongst the provinces. Although this increase provides relief to workers, it poses new challenges for businesses. Annual CPI-based wage increases are soon to become national policy, thereby increasing the pressure on Alberta to reconsider its current policy.
Frequently Asked Questions (FAQs)
1. Which provinces implemented a wage increase on October 1, 2025?
Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island implemented the increases.
2. What is Ontario’s new minimum wage?
Ontario’s minimum wage has increased to $17.60 per hour.
3. Why is Alberta’s wage the lowest?
Because Alberta hasn’t had any raises since 2018, making its rate now the lowest in the country.
4. Which provinces have previously raised wages in 2025?
British Columbia, Quebec, New Brunswick, and Newfoundland & Labrador have already raised them.
5. What impact do wage increases have on businesses?
Businesses may raise prices or make staffing changes due to rising costs, but they also benefit from improved employee stability and increased local spending.
