Canada hikes minimum wage; Indian students and workers set to benefit

In a move aimed at addressing rising living costs, Canada has raised its federal minimum wage from 17.30 CAD to 17.75 CAD per hour for workers in the federally regulated private sector. The decision, effective April 1, brings some welcome relief to thousands of Indian students and temporary workers, many of whom have been grappling with financial pressure amid inflation.

Indian students and immigrants form a significant part of Canada’s temporary workforce and gig economy. In 2024 alone, they accounted for 22% of the temporary labour force. With most Indian workers employed in sectors like retail, construction, healthcare, IT, and business, this wage hike is expected to have a noticeable impact.

Canadian Minister of Employment Steven MacKinnon emphasized the broader goal of the wage hike, stating, “The federal minimum wage brings stability and certainty to Canadian workers and businesses alike and helps reduce income inequality across the board.”

Employers have been instructed to update payroll systems accordingly and ensure that all eligible workers, including interns, are paid at the revised rate. The adjustment is made annually in line with Canada's Consumer Price Index, which reflects inflation trends.

The rising cost of essentials in Canada had led to distressing scenes recently, including food banks turning away international students due to overwhelming demand. This increase, although modest at 2.4%, is expected to cushion some of the financial strain for temporary residents.

Canada continues to be a top education destination for Indian students, especially in fields like computer science, engineering, business, health sciences, and IT. According to the Canadian Bureau of Higher Education, Indian students contributed nearly $4.9 billion to the economy in 2021, making them the largest group of international students.

As the 2025 Canadian federal elections near, economic concerns including inflation, student welfare, and immigrant support are likely to be major campaign issues. This wage hike could help the Trudeau government reframe the narrative by addressing at least some of those challenges.