Beginning October 1, 2025, five Canadian provinces have raised their minimum wage levels to support workers struggling with the rising cost of living. The updates were rolled out in Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island, bringing immediate changes to the paycheques of thousands of employees.
These adjustments are tied to the Consumer Price Index (CPI), which measures inflation by tracking the cost of goods and services. By adopting CPI-linked wage systems, provinces aim to ensure earnings do not fall behind living costs. Despite these moves, Alberta’s minimum wage of $15 per hour, unchanged since 2018, is now officially the lowest in the country.
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Provinces with New Wage Levels
The latest changes have reshaped Canada’s wage landscape, with Ontario taking the lead among the provinces updating their rates in October. Saskatchewan made the smallest increase, while Nova Scotia and Prince Edward Island opted for equal rates to align workers’ earnings.
| Province | Minimum Wage (per hour) | Effective Date |
|---|---|---|
| Ontario | $17.60 | Oct 1, 2025 |
| Nova Scotia | $16.50 | Oct 1, 2025 |
| Prince Edward Island | $16.50 | Oct 1, 2025 |
| Manitoba | $16.00 | Oct 1, 2025 |
| Saskatchewan | $15.35 | Oct 1, 2025 |
| Alberta | $15.00 (unchanged) | Last raised 2018 |
These new levels bring Ontario close to British Columbia, which raised its minimum wage earlier this year above $17. Nova Scotia and Prince Edward Island now sit at $16.50, while Manitoba reaches $16 and Saskatchewan moves to $15.35. Alberta remains at $15, the lowest in Canada.
Earlier Increases in 2025
This latest round of adjustments follows a series of hikes earlier in the year. British Columbia, Quebec, New Brunswick, and Newfoundland and Labrador all raised their minimum wages in 2025. With most provinces now tied to inflation-based systems, annual updates have become standard practice across much of Canada.
The trend reflects growing pressure on governments to respond to affordability challenges. Rising prices for housing, groceries, fuel, and utilities have left low-income workers particularly vulnerable, making minimum wage policy a key part of provincial economic strategies.
Alberta Falls Behind
Alberta’s minimum wage has remained frozen at $15 since October 2018, when it was among the highest in the country. Since then, inflation has steadily reduced its real value, leaving Alberta workers earning substantially less compared to counterparts in other provinces.
The gap is most visible when compared to Ontario. A full-time worker in Alberta earning $15 per hour makes about $31,200 annually before taxes, while an Ontario worker earning $17.60 brings in roughly $36,600 annually. That is a difference of over $5,000 each year.
Employers in Alberta benefit from lower wage costs, which may support competitiveness in some industries. However, the stagnant wage rate has drawn criticism from worker advocacy groups who argue it places unnecessary strain on families facing rising living costs.
Impact on Workers
For employees, the October wage hikes provide a direct income boost. In provinces like Nova Scotia and Prince Edward Island, where rental markets have become increasingly expensive, even an extra $0.50 to $1 per hour translates into hundreds of dollars more each year.
The benefits include:
- Greater disposable income for basic expenses.
- Reduced financial stress for part-time and student workers.
- More consistent alignment between wages and inflation rates.
Still, the increases may not fully offset rapid rises in housing and food prices. Advocates stress that while higher minimum wages help, they should be accompanied by broader affordability measures.
Impact on Businesses
For businesses, particularly in retail, hospitality, and small enterprises, wage hikes increase payroll costs. Many employers respond by adjusting staffing schedules or raising prices. Small businesses are often the most affected, as they operate with slimmer margins.
However, higher wages can also deliver positive outcomes. Employers may benefit from lower staff turnover, improved employee morale, and stronger consumer demand as workers have more money to spend in local economies. Economists note that while wage hikes bring short-term challenges, they can strengthen communities by boosting overall economic activity.
Full National Comparison
When combining the October adjustments with earlier 2025 hikes, Canada’s wage map now shows wide variation across provinces.
| Province/Territory | Minimum Wage (per hour) |
|---|---|
| British Columbia | $17+ (raised earlier 2025) |
| Ontario | $17.60 |
| Quebec | $15.75+ (raised earlier 2025) |
| Nova Scotia | $16.50 |
| Prince Edward Island | $16.50 |
| Manitoba | $16.00 |
| Newfoundland & Labrador | $15.75+ |
| New Brunswick | $15.75+ |
| Saskatchewan | $15.35 |
| Alberta | $15.00 |
| Territories (varies) | Generally above $16.00 |
The territories, which face higher living costs due to geographic conditions, generally maintain minimum wages above $16. Alberta now stands alone at the bottom, with all other provinces exceeding its rate.
The October 2025 wage increases mark another shift in Canada’s economic landscape. With Ontario now offering one of the highest provincial minimum wages and Alberta lagging behind, the divide between provinces is clearer than ever. For workers, the increases bring modest relief against inflation, while for businesses, they create new cost considerations.
As affordability remains a pressing issue nationwide, minimum wage policy will continue to play a central role in balancing household needs and economic growth. The adoption of CPI-based adjustments across most provinces suggests that regular annual hikes are here to stay, leaving Alberta under growing pressure to revisit its policy.
Frequently Asked Questions
What provinces raised the minimum wage on October 1, 2025?
Ontario, Manitoba, Saskatchewan, Nova Scotia, and Prince Edward Island implemented wage increases effective October 1, 2025.
What is Ontario’s new minimum wage?
Ontario’s minimum wage increased to $17.60 per hour, making it the highest among the provinces that adjusted their rates in October.
Why is Alberta’s minimum wage the lowest?
Alberta has not raised its minimum wage since 2018, leaving it at $15 per hour. With inflation eroding its value, it is now the lowest in the country.
Which provinces raised their minimum wage earlier in 2025?
British Columbia, Quebec, New Brunswick, and Newfoundland and Labrador increased their rates earlier in the year.
How do minimum wage increases affect businesses?
Wage hikes raise payroll costs, particularly for small businesses. Employers may adjust prices, reduce hours, or streamline operations, but they may also benefit from lower staff turnover and stronger consumer spending.