In Budget 2021, the Government of Canada proposed to establish a federal minimum wage of $15 per hour, rising with inflation. Today, the Government is announcing that this important change will come into effect on December 29, 2021, following Royal Assent to Budget Implementation Act, 2021, No. 1. The changes will affect workers in the federally regulated private sector and represent an important step towards reducing poverty and inequality.
The central Bank of Canada attempts to maintain inflation rates no higher than 2%. Inflation is currently at 4.4%. This rate has been significantly higher than the desired 2% since March 2021. Inflation will likely stay high well into 2022. To ensure Canadians can continue to live and survive, wages must go up. Especially through a period of high inflation.
