Minimum Wage in Alberta: What You Need to Know

As of 2025, Alberta has one of the lowest minimum wages in Canada. The minimum wage in Alberta impacts thousands of workers while neighbouring provinces continue to raise their rates. 

Moreover, the Employment Standards Code sets different wage rules for groups such as students under 18, live-in caregivers, and certain salaried professionals. Understanding these rules is important for both compliance and protecting workers’ rights.

What is Alberta’s Minimum Wage in 2025?

Alberta’s general minimum wage in 2025 remains $15 per hour for most employees, unchanged since October 1, 2018, according to the Government of Alberta Employment Standards. This applies province-wide, including in Calgary, Edmonton, Red Deer, Lethbridge, Medicine Hat, Fort McMurray, Grande Prairie, Spruce Grove, St. Albert, and all other Alberta municipalities.

It applies to:

• Full-time adult employees
• Part-time adult employees
• Salaried workers earning below $15 per hour

However, not all workers fall under the general rate. Certain occupations and workers have unique minimum wage rates:

• Students under 18 – $13 per hour for the first 28 weekly hours. Must earn $15 for any additional hours. This aims to spur youth employment.
• Weekly minimum wage workers – $598 per week minimum for salespeople, accountants, dentists, lawyers, and other listed professionals.
• Live-in domestic workers – $2,848 per month minimum for domestic employees residing in the employer’s home. Recognizes room and board provisions.

Source: https://www.alberta.ca/minimum-wage

Alberta’s Historical Minimum Wage

Alberta has consistently increased its general minimum wage over the past years:

• 2008 – $8.40 per hour
• 2009 – $8.80 per hour
• 2010 – $8.80 per hour
• 2011 – $9.40 per hour
• 2012 – $9.75 per hour
• 2013 – $9.95 per hour
• 2014 – $10.20 per hour
• 2015 – $110.20 per hour
• 2016 – $12.20 per hour
• 2017 – $13.60 per hour
• 2018 – $15 per hour
• 2019 – $15 per hour
• 2020 – $15 per hour
• 2021 – $15 per hour
• 2022 – $15 per hour
• 2023 – $15 per hour
• 2024 – $15 per hour
• 2025 – $15 per hour

The significant increase to $15 per hour in 2018 made Alberta the first province to adopt that rate. The provincial government cited the rationales for the increase as reducing poverty, easing pressure on social programs, and improving Albertans’ quality of life.

However, Alberta’s minimum wage has remained static at $15 per hour since October 2018, in contrast to other provinces’ regular inflation adjustments. Workers’ purchasing power and standard of living have gone down as the value of $15 decreases each year.

As of 2025, there are no plans to increase the minimum wage further. Without change, Alberta’s frozen $15 wage will continue to lag behind rising living expenses.

Source: Alberta Minimum Wage: Employee Facts – stlawyers.ca

The Origins of Minimum Wage Laws in Alberta

Minimum wage laws aim to protect vulnerable, low-skilled workers from poverty wages. Alberta enacted its first minimum wage legislation in 1967 as part of the Male Minimum Wage Act, which only applied to men. Female minimum wages came later, in 1975.

Historically, opponents have come from those who argue that minimums infringe on the freedom of contract between employers and employees. However, prevailing labour protections recognized that power imbalances between workers and employers warranted government intervention through minimums.

The Economic Impacts of Minimum Wage in Alberta

Increasing the minimum wage in Alberta brings four main benefits:

• Reduced poverty: Higher incomes for minimum wage earners decrease poverty. Alberta’s 2018 increase contributed to a 9.7% decline in the poverty rate from 2015 to 2019.
• Increased consumer spending: Extra income for low-wage workers provides more spending power to stimulate economic growth.
• Improved living standards: Fair pay enhances quality of life and spurs human capital development.
• Tax savings: Higher wages reduce reliance on social assistance programs, lowering costs.

However, there are also 4 drawbacks to consider:

• Job loss: Businesses may cut jobs or hours to reduce labour costs. However, studies show minimal to no long-term employment impacts.
• Higher consumer prices: Businesses may raise prices to compensate for higher wages, eroding consumer purchasing power. Prices increased an average of 0.73% following Alberta’s 2018 hike.
• Business costs: Rapid increases make adapting difficult, especially for small businesses with tight profit margins.
• Reduced hiring: Businesses may hire fewer inexperienced workers. However, optimal minimum wage levels exist to minimize employment loss.

Overall, the evidence suggests Alberta’s impacts appear modestly positive thus far. Further inflation-adjusted increases could continue to benefit low-income workers without undue hardship to businesses.

Regulations Around Alberta’s Minimum Wage

Beyond regulated minimum hourly rates, Alberta has additional pay regulations:

Three-Hour Minimum Pay Regulation

Employees must receive at least three hours of pay at the applicable minimum wage rate each day, even if they work less than three hours.

Exceptions apply if the worker is unavailable for the full period or earns above the minimum wage. This prevents employee exploitation through extremely short work periods.

Overtime Pay Regulations in Alberta

Overtime pay in Alberta is 1.5 times the regular minimum wage rate unless the employee has an agreed-upon overtime wage. Overtime applies when employees work more than 8 hours daily or 44 hours weekly.

Allowable Deductions from Minimum Wage Earnings

Employers can deduct:

• Up to $3.35 per meal consumed if employees provide written consent.
• Up to $4.41 daily for lodging provided to employees.

No deductions are allowed for work uniforms or other required clothing.

Minimum Wage Exemptions in Alberta

Select professions exempt from standard minimum wage rules include:

• Real estate and insurance salespeople on commission
• Students in approved work programs
• Post-secondary academic staff
• Non-profit recreational camp staff
• Film production extras

These occupations are exempt owing to their unique pay arrangements. They operate outside traditional hourly wage structures.

Source: Alberta Minimum Wage 2025 – loanscanada.ca

Payroll Deductions on Minimum Wage Earnings

While minimum wage sets a pay floor, regular payroll deductions still apply:

• Income taxes – Deducted for federal and provincial programs and spending.
• Canada Pension Plan (CPP) – Funds retirement income.
• Employment Insurance (EI) – Provides temporary unemployment assistance.

Common deductions include union dues, registered pension plans, health benefits, and insurance premiums. Gross pay before deductions must equal at least the minimum wage for applicable Alberta employees.

The Likelihood of Future Minimum Wage in Alberta

Alberta currently has no plans to raise the $15 minimum wage further. However, future increases remain politically possible depending on economic conditions and public pressure.

Tying annual increases to inflation would ensure wages retain purchasing power without eroding business operating margins.

Small, predictable increases allow businesses to adapt through measured price and productivity adjustments.

For now, the $15 wage represents a precarious balance between the interests of Alberta workers and employers. Sustained advocacy by low-wage employees may compel future increases, particularly if inflation continues eroding real wage values.

Find more about Canadian provincial and territorial minimum wage rates and standards at:

• Minimum Wage in British Columbia
• Minimum Wage in Manitoba
• Minimum Wage in New Brunswick
• Minimum Wage in Newfoundland and Labrador
• Minimum Wage in Northwest Territories
• Minimum Wage in Nunavut

The Bottom Line

Alberta continually strives to balance the nuanced impacts of its minimum wage policy on employees, businesses, the economy, inflation, and unemployment levels. As the cost of living outpaces frozen wage rates, pressure may continue mounting to increase Alberta’s current $15 per hour minimum to align with inflation and national standards.

Frequently Asked Questions About Minimum Wage in Alberta