The federal minimum wage is rising to $16.65 per hour on April 1, up from $15.55.
The government says the increase is based on the consumer price index, which rose 6.8 per cent in 2022.
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.
Ottawa set a federal minimum wage of $15 per hour in 2021 and increases it each year based on inflation.
The changes are made every year on April 1.
Where the provincial or territorial minimum wage rate is higher than the federal rate, employers must apply the higher amount.
This report by The Canadian Press was first published March 21, 2023.