Minimum Wage in Alberta 2025: Current Rates & Rules

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As of 2025, Alberta has one of the lowest minimum wages in Canada. The minimum wage has been frozen for years, while other provinces implement regular increases. This growing disparity affects thousands of Albertans in a real way.

But a single rate doesn’t tell the whole story, as the Employment Standards Code establishes distinct wage rules for various groups, including minors, live-in caregivers, and certain salaried professionals. Understanding these rules is important for both compliance and protecting workers’ rights.

What is the Minimum Wage in Alberta 2025?

Alberta’s general minimum wage in 2025 remains $15 per hour for most employees, which is $2.75 less than the federal minimum wage. This rate is unchanged since October 1, 2018.

However, not all workers fall under that general rate. There are 3 certain occupations and workers have unique Alberta minimum wage rates:

  • Students under 18: $13 per hour for the first 28 hours per week. For any additional hours, Alberta’s minimum wage for those under 18 becomes $15.
  • 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.

Alberta Minimum Wage History (2008-2025)

Alberta has consistently increased its general minimum wage over the past years. Here is the minimum pay rate in Alberta from 2008 to 2025:

Effective DateMinimum WageIncrease
Oct 1, 2008$8.40 per hourN/A
Oct 1, 2009$8.80 per hour$0.40
Oct 1, 2010$8.80 per hour$0.00
Oct 1, 2011$9.40 per hour$0.60
Oct 1, 2012$9.75 per hour$0.35
Oct 1, 2013$9.95 per hour$0.20
Oct 1, 2014$10.20 per hour$0.25
Oct 1, 2015$11.20 per hour$1.00
Oct 1, 2016$12.20 per hour$1.00
Oct 1, 2017$13.60 per hour$1.40
Oct 1, 2018$15 per hour$1.40
Oct 1, 2019$15 per hour$0.00
Oct 1, 2020$15 per hour$0.00
Oct 1, 2021$15 per hour$0.00
Oct 1, 2022$15 per hour$0.00
Oct 1, 2023$15 per hour$0.00
Oct 1, 2024$15 per hour$0.00
Oct 1, 2025$15 per hour$0.00

The province raised the minimum wage from $10.20 in 2014 to $15.00 in 2018, a 47% increase over five years. The significant increase to $15 per hour in 2018 made Alberta the first province to adopt that rate.

However, that rate has remained static for over 7 years. Alberta’s minimum wage is now lower than that of many other provinces. This has led to ongoing conversations about whether Alberta should raise the minimum wage again to match current living costs.

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

Who Does the Minimum Wage in Alberta Apply To?

Alberta’s Employment Standards Code requires employers to pay this minimum regardless of employment type, whether hourly, salaried, commission-based, or piece-rate.

The $15.00 rate applies to full-time, part-time, casual, and temporary workers across most industries, including retail, hospitality, construction, and call centers.

Still, some workers are exempt from these rules and do not receive minimum wage protection:

  • Independent contractors set their own rates. If you control how, when, and where you work, provide your own tools, and can profit or lose money from your work
  • Small farms (5 or fewer waged, non-family, long-term employees), farm and ranch workers are exempt from most Employment Standards, including minimum wage.
  • Real estate and insurance salespeople working purely on commission may be exempt if they meet specific criteria. The exemption depends on your contract structure and degree of independence.
  • Students in work experience programs required for course credit may be exempt during the educational placement portion.

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

What are the Rules Affecting Minimum Wage in Alberta?

The Economic Impacts of Minimum Wage in Alberta
How is the Minimum Wage in Alberta Affected by Economic Factors?

Alberta has three pay rules related to the basic hourly rates. They cover the three-hour minimum requirement, overtime pay, and meal and lodging deductions.

Here is the detail about protections and requirements related to minimum wages in Alberta:

3-Hour Minimum Rules in Alberta

Employees must receive at least three hours of pay at the applicable minimum wage rate each day, regardless of the actual hours worked.

In split shifts, where an employee works two separate shifts in one day with unpaid time in between, each shift must be paid for at least three hours of work. Therefore, if an employee works 2 hours in the morning and 2 hours in the evening, they should be paid a minimum of 6 hours (3 hours for each shift).

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 Rules in Alberta

Overtime pay in Alberta is 1.5 times the regular minimum wage rate unless the employee has an agreed-upon overtime wage. It applies when employees work more than 8 hours a day or 44 hours a week. This means general employees in Alberta who earn $15 per hour receive overtime pay at $22.50 per hour.

For students under 18, overtime is also paid at 1.5 times their regular wage and triggered when they work more than 8 hours in a day or 44 hours in a week.

  • If they are paid the $13.00 job creation wage, their overtime rate is $19.50 per hour.
  • If they must be paid the general minimum wage of $15.00 per hour (for example, after the first 28 hours in a school week), their overtime rate becomes $22.50 per hour.

Managers and supervisors are often exempt from overtime entitlement, but employers must still ensure they receive at least the general minimum wage for all hours worked.

Allowable Deductions from AB Minimum Wage Earnings

Not all wage deductions are allowed in Alberta, and employers must follow specific rules before taking money off a worker’s pay.

Statutory deductions

Your employer must take these from your pay, and they do not need your consent to do so. These include income tax, Employment Insurance (EI), Canada Pension Plan (CPP) contributions, court-ordered wage garnishments for child support or outstanding debts, and union dues for employees with collective agreements.

Meals and lodging deductions

An employer can only deduct costs for certain items if you have given them your clear, written permission to do so. A verbal “okay” is not enough. 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.

Prohibited deductions

There are several costs of doing business that an employer is legally forbidden from passing on to you through payroll deductions.

Your employer cannot deduct pay for:

  • Uniforms or Special Clothing: This includes any costs related to the purchase, cleaning, or repair of a uniform or specific clothing you are required to wear for your job.
  • Faulty Work: You cannot be charged for mistakes or accidental damage. This covers things like accidentally breaking a piece of equipment, making an error in production, or providing a service that a customer was unhappy with.
  • Cash Shortages or Property Loss (with shared access): An employer cannot deduct money from your pay for a cash shortage or for lost/damaged property if other people (like your manager, other employees, or customers) also had access to the cash or property.

Source: Alberta Minimum Wage 2025 – loanscanada.ca

What Are the Employer Obligations for Minimum Wage in Alberta?

Employers must follow specific requirements to comply with minimum wage laws and maintain proper records.

Paying Minimum Wage Correctly

Employers have to calculate wages by dividing total pay by hours worked for each pay period.

This amount must equal or exceed $15.00 per hour. For salaried employees, divide the salary by hours worked during the pay period to verify compliance.

After 8 hours in a day or 44 hours in a week, employees earn 1.5 times their regular rate. The regular rate must be at least $15.00, making the overtime rate at least $22.50 per hour.

Required Record-Keeping

Employers must maintain records for each employee showing hours worked, wages paid, and deductions taken. These records must be kept for at least three years after the employment ends. Required records include:

  • Any leaves of absence
  • Employee’s name, address, and date of birth if under 18
  • Start date and job title
  • Hours worked each day and each pay period
  • Wage rate and how wages are calculated
  • Gross and net wages paid each period
  • Deductions with explanations
  • Vacation time and vacation pay

Posting Requirements

Employers must display the current Employment Standards Code information poster where employees can easily see it.

This poster shows minimum wage rates and summarizes basic employment rights.

Penalty for Non-Compliance

Employers who violate minimum wage requirements face orders to pay owed wages plus interest.

Repeated or intentional violations can result in administrative penalties up to $500 per violation for individuals and $2,000 per violation for corporations.

Will Alberta Raise the Minimum Wage?

The Likelihood of Future Minimum Wage in Alberta
How the Minimum Wage in Alberta is projected

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.

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.

You can find more about Canadian provincial and territorial minimum wage rates and standards at:

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

How is minimum wage determined in Alberta?

The provincial government sets minimum wage rates in Alberta based on the Employment Standards Code and Labour Relations Code. The rates aim to balance fair employee compensation with manageable payroll costs for employers.

Does Alberta adjust the minimum wage for inflation?

No, Alberta does not currently adjust its minimum wage annually for inflation. The $15 per hour rate has been frozen since 2018, resulting in erosion of its real value due to rising living costs.

How are tips handled with minimum wage in Alberta?

Tips and gratuities are separate and in addition to minimum wage pay in Alberta. Employers cannot use tips to offset the requirement to pay at least the minimum wage.

How can minimum wage violations be reported in Alberta?

Workers can report suspected minimum wage violations to the Employment Standards Complaint Line for investigation. The province can order employers to compensate employees appropriately.

Can employers pay students under 18 less than minimum wage?

Yes. Students under 18 earn $13.00 per hour for the first 28 hours worked in a week when school is in session. Beyond 28 hours, students must receive the general minimum wage of $15.00 per hour.
When school is not in session (for example, summer or winter breaks), the $13.00 job creation wage can apply to all regular hours worked, while overtime rules still apply if the student works more than 8 hours a day or 44 hours a week.

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Ben Nguyen
Ben Nguyen
Ben Nguyen is the Website Content Manager at Ebsource that brings 10 years of experience as a licensed employee benefits advisor. He provides expertise in creating customized benefit plans that are tailored to meet clients' needs, with 10 years of experience.

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