Canada Minimum Wage 2025: Five provinces have raised their minimum wages, why is Alberta lagging behind?
As of the first of October 2025, five provinces in Canada have increased their minimum wages, while Alberta is sitting still at the $15-per-hour minimum. The changes were made in consideration of rising inflation and the cost of living. However, Alberta stagnant wages by now have become a major topic of dispute in the economy of the country.
Provinces Where Wage Levels Were Changed
Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island have all immediately improved the minimums for thousands of workers. Changes are all linked to the Consumer Price Index (CPI) so that the wages would keep up with the inflation.
With this update, Alberta’s $15 rate is now the lowest in Canada.
Earlier Increases in 2025
Earlier in 2025, wages were also increased in British Columbia, Quebec, New Brunswick, and Newfoundland and Labrador. Most provinces now go for a somewhat automatic annual CPI indexation, which raises wages according to the rate of inflation.
This trend now becomes more pressing due to the high cost of living in Canada.
Alberta Falls Back
The minimum wage in Alberta has remained clamped at $15 since 2018, which has previously been the highest in Canada. It has been noted that inflation has eroded the real value of that wage, resulting in Alberta workers earning some thousands less per year compared to workers in other provinces.
While this rate places some businesses at an advantage, labor unions are claiming that it places an additional burden on families.
The Impact on Workers
The new wage increase directly provides additional income for workers, especially in provinces where rent and essential goods have become more expensive. Even a small hourly increase can mean hundreds of dollars in relief over a year.
Still, experts believe the wage increase is far too little, and social assistance programs will need to be implemented.
The Impact on Businesses
For businesses, especially small shopkeepers and restaurant owners, an increase in wages means an increase in costs.
To offset their increased costs, many businesses raise their prices, lay off employees, or reduce working hours.
But the upside of this increased wage is that it motivates employees, reduces turnover, and boosts the local economy.
Full National Comparison
Across the universe of wage adjustments as of 2025, there is a very significant wage gap between Canadian provinces. Some provinces go out to above $17, while Alberta goes in fairly last with $15. Territories tend to have a higher rate since there is a much higher cost of living.
October 2025 Wage Hikes: What It Means for Canada
These new increases have significantly altered Canada’s economic framework. While Ontario and BC are pursuing higher wages, Alberta has lagged behind, thereby further widening the gap between the provinces. Experts believe a CPI-based system could soon become the standard throughout Canada.
Frequently Asked Questions
Q: Which provinces increased the minimum wage on October 1, 2025?
Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island.
Q: What is Ontario’s new minimum wage?
Ontario has increased wages to $17.60/hour.
Q: Why is Alberta lagging behind?
Alberta hasn’t increased wages since 2018, so its rate remains frozen at $15.
Q: Which provinces have increased the wages so far in 2025?
British Columbia, Quebec, New Brunswick, and Newfoundland and Labrador.
Q: What is the effect of wage increases on businesses?
Costs go up but also increases job security, morale, and spending in the community.
