In a series of significant legislative changes, several Canadian provinces and territories have updated their labor laws concerning minimum wage and sick leave. These changes, effective in late 2025, are designed to address the rising cost of living and enhance protections for workers, reflecting a trend towards greater employee welfare across the country.
Minimum wage increases
On October 1, 2025, a number of provinces increased their minimum wage rates.
- Manitoba: The minimum wage increased to CAD 16.00.
- Saskatchewan: The minimum wage rose to CAD 15.35.
- Nova Scotia: The new minimum wage is CAD 16.50.
- Ontario: The minimum wage increased to CAD 17.60.
- Prince Edward Island: The minimum wage is now CAD 16.50.
Additionally, the Northwest Territories saw its minimum wage increase to CAD 16.95 per hour, effective September 1, 2025. This makes it no longer the lowest in the country.
Changes to sick leave in Newfoundland and Labrador
Newfoundland and Labrador has made notable changes to its sick leave policies. The province has repealed the requirement for employees to provide a medical certificate for sick leave lasting three or more consecutive days.
Furthermore, the province has introduced a new provision for long-term, unpaid sick leave. Employees who have worked for the same employer for at least 30 consecutive days are now eligible to take up to 27 weeks of leave in a 52-week period. This leave is for long-term illness, injury, or organ donation, and it requires a medical certificate from a practitioner.
In a specific case, if a long-term illness or injury is a result of a criminal offense, eligible employees are entitled to an extended unpaid leave of up to 104 weeks in a 104-week period.
What this means for skilled workers
For skilled workers and contractors across Canada, these changes provide a more stable and supportive work environment. The minimum wage increases in multiple provinces aim to keep pace with the cost of living, providing a financial boost to many employees.
In Newfoundland and Labrador, the removal of the medical certificate requirement for shorter absences simplifies the process of taking sick leave, reducing administrative hassle. The introduction of job-protected long-term leave for serious medical conditions is a significant benefit, ensuring that workers can prioritize their health without the added stress of job insecurity.
What it means for employers
For employers operating in these Canadian provinces, these updates necessitate immediate action to ensure compliance. Businesses must adjust their payroll systems to reflect the new minimum wage rates and update their internal policies to align with Newfoundland and Labrador’s new sick leave requirements. Failure to comply can result in financial penalties and legal repercussions.
Navigating these provincial-specific labor laws can be a complex and time-consuming task, particularly for international companies. An Employer of Record (EOR) like Multiplier provides a comprehensive solution by handling all aspects of global employment.
By partnering with Multiplier, companies can seamlessly onboard and manage employees in Canada, ensuring full compliance with all local regulations, including minimum wage adjustments and evolving sick leave policies. Multiplier handles the legal and administrative burdens, allowing employers to focus on their core business functions.
Conclusion
Canada’s recent labor law updates across its provinces demonstrate a commitment to improving worker protections and financial stability. The minimum wage hikes and progressive sick leave policies in Newfoundland and Labrador are a clear step in this direction.
For businesses, especially those hiring international talent, staying on top of these regional changes is crucial. Multiplier’s EOR services offer a streamlined and compliant way to manage a Canadian workforce, mitigating risks and simplifying global operations.
Book a demo today.
FAQs
What are the new minimum wages in Canada as of October 1, 2025?
Effective October 1, 2025, the minimum wages are as follows: CAD 16.00 in Manitoba, CAD 15.35 in Saskatchewan, CAD 16.50 in Nova Scotia, CAD 17.60 in Ontario, and CAD 16.50 in Prince Edward Island. The Northwest Territories' minimum wage also increased to CAD 16.95 per hour on September 1, 2025.
What is the new sick leave policy in Newfoundland and Labrador?
Newfoundland and Labrador has eliminated the requirement for a medical certificate for sick leave of three or more consecutive days. Additionally, eligible employees are now entitled to up to 27 weeks of unpaid sick leave in a 52-week period for a long-term illness, injury, or organ donation.
What are the eligibility criteria for long-term sick leave in Newfoundland and Labrador?
To be eligible for the long-term sick leave, an employee must have worked for the same employer for at least 30 consecutive days. They must also provide a medical certificate from a medical practitioner stating that they require extended medical care, including the start and estimated end dates of the leave.
How does the new sick leave policy handle injuries from a criminal offense in Newfoundland and Labrador?
If a long-term illness or injury is the result of a criminal offense, an eligible employee in Newfoundland and Labrador is entitled to an extended unpaid leave of up to 104 weeks in a 104-week period.
How can a company with no legal presence in Canada hire a remote employee and comply with these new regulations?
A company with no legal presence in Canada can hire a remote employee and ensure compliance by partnering with an Employer of Record (EOR) like Multiplier. The EOR handles all legal, administrative, and payroll responsibilities, ensuring the company adheres to all federal and provincial labor laws, including minimum wage adjustments and new sick leave policies, without the need for the company to establish its own local entity.
