The Canadian government has decided to increase the federal minimum wage by 7 percent. 

Wages will increase from 15.55 Canadian dollars (12.4 U.S. dollars) to 16.65 Canadian dollars per hour.

The wages will be increased from 1st April onwards.

The decision has been taken to keep pace with inflation.

According to the  Consumer Price Index (CPI), the increase will make life more affordable for the approximately 26,000 Canadian workers who earn less than the current rate.

Private-sector employers have to adjust their payroll information with the new rate.

The federal minimum wage applies to the federally regulated private sectors, including banks, postal and courier services, and interprovincial air, rail, road, and marine transportation.

On 1st April of every year, the federal minimum wage is adjusted based on Canada's CPI of the previous calendar year.

On 1st April 2022, the first adjustment took place.

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