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Minimum Wages and Payment of Wages

Ensuring Workers Get Paid

Minimum wages, the lowest wages an employer can pay workers, as well as payment of wages, are regulated by the Canada Labour Code. The Code is administered by Human Resources and Skills Development Canada’s Labour Program and applies to federally regulated workplaces.

Canada Labour Code

Code provisions are minimum standards only and do not interfere with additional rights or enhanced benefits established by collective agreements, private arrangements or employer policies.

The Canada Labour Code covers all workers and employers who work within the federal jurisdiction. This includes some of Canada’s major infrastructure sectors, such as interprovincial and international transportation (air, rail, ports and trucking), communications, banking and Crown corporations.

Minimum Wages

With the exception of registered apprentices, all workers, regardless of their age, must be paid at least the minimum wage. An employer does not have to pay the minimum wage for workers who are being trained on the job if the workers are registered under and paid according to provincial apprenticeship legislation.

The federal minimum wage rates are the general minimum wage rate established by each province and territory. Every time a province or a territory raises its minimum wage rate, the federal minimum wage rate for that province or territory is increased automatically.

Payment of Wages

Employers are required to pay workers on the regular payday, as established by the employer's practice, and to pay any wages or other amounts such as overtime pay (a minimum of one and one-half (1.5) times the regular rate of wages), general holiday pay, severance pay, or bereavement pay within 30 days of entitlement. As well, an employer must pay a worker who reports for work at the employer’s request a minimum of three hours at the worker's regular rate of wages, whether or not the worker is asked to do any work during this period.

Deduction of Wages

In most instances, a written authorization from the worker is required to deduct an amount from their salary. This applies to situations where the worker owes money to the employer, or for monthly insurance premiums. The worker’s consent must be voluntary. Exceptions when no written authorization is required include:

  • deduction required by federal or provincial law such as taxes and employment insurance premiums;
  • deduction authorized by a court order such as child support garnishment or by a collective agreement such as union dues; and
  • overpayment of wages.

Wage Recovery

The wage recovery system (provision) helps workers collect unpaid wages or other amounts owed by their employer. After a worker files a complaint, a Labour Program inspector investigates to determine whether the complaint is founded.

Compliance

The Code contains provisions designed to support voluntary compliance, which the Labour Program promotes using a range of tools and techniques. If required, it responds to non-compliance situations through various voluntary and non-voluntary measures.

Minimum wage, one of Canada’s oldest social policies, exists in every province and territory as part of employment standards legislation.

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Date Modified:
2011-10-05