Altec's Insight | Canada’s Law and Policy Major Changes for 2025

As we step into 2025, Canadian residents will experience a range of impactful federal and provincial policy updates designed to tackle affordability, inflation, and social equity. From minimum wage increases to expanded social programs and adjusted tax rules, here’s a breakdown of the most significant changes you should know about.

Minimum Wage Increases Across Canada

Minimum wages are increasing across various provinces and federally regulated industries to help workers combat the rising cost of living:

• Federal Minimum Wage: Rising to $17.70/hour (from $17.30) on April 1, 2025.
• Ontario: Another adjustment in October, expected to raise the rate from $17.20/hour.
• British Columbia: Increasing to $17.40/hour on June 1, 2025.
• Yukon, Nova Scotia, and New Brunswick: Scheduled increases on April 1, 2025, with current rates at $17.59, $15.20, and $15.30/hour, respectively.

Updated Tax Rules

Income Tax Bracket Adjustments

To align with a 2.7% inflation rate, the federal income tax brackets are updated:

• 15%: Up to $57,375
• 20.5%: $57,375–$114,750
• 26%: $114,750–$177,882
• 29%: $177,882–$253,414
• 33%: Over $253,414

Contribution Limits

• TFSA: Annual contribution limit remains at $7,000, with a lifetime cumulative cap of $102,000.
• RRSP: Limit increases to $32,490, up from $31,560 in 2024.

Corporate Tax Incentives

New green tax credits reward businesses adopting renewable energy or carbon-neutral practices, promoting sustainability across sectors.

CPP and EI Updates

Canada Pension Plan (CPP)

• Employee Contributions: Maximum contribution rises to $4,034.10.
• Self-Employed Contributions: Cap increases to $8,068.20.
• Additional Contributions (CPP2): For income between $71,300 and $81,200, with max contributions of $396 (employee/employer) and $792 (self-employed).

Employment Insurance (EI) Premiums

• Employee Rate: $1.64 per $100 of insurable earnings (max $1,077.48).
• Employer Rate: $2.30 per $100 (max $1,508.47).
• Quebec Rates: Lower at $1.31 (employees) and $1.83 (employers).

Extended EI Sickness Benefits

• Now offering up to 28 weeks of coverage, up from 26 weeks.

Canadian Dental Care Plan Expansion

The Canadian Dental Care Plan now covers all eligible Canadians earning under $90,000 annually, with subsidies covering 40% to 100% of dental costs.

Enhanced Canada Child Benefit (CCB)

• Extended Payments: Up to 6 months of support following the death of a child.
• Inflation Indexing: CCB payments now indexed at a 2.7% inflation rate, ensuring financial stability for families.

Housing Affordability Measures

First-Time Buyers’ Mortgage Rules

• Lower Down Payments: 5% for the first $500,000, 10% for amounts between $500,000–$1.5 million.
• Extended Amortization: 30-year terms for insured mortgages on preconstruction homes.

Capital Gains Tax Increase

• Capital gains inclusion rate rises from 50% to 66.7%, applying to gains over $250,000.

Province-Specific Changes

British Columbia

• Anti-Home-Flipping Tax: 20% tax on properties sold within 2 years of purchase (exceptions apply).
• Rent Cap: Reduced to 3%, down from 3.5%.
• Climate Action Rebates: Quarterly rebates of up to $400 for energy-efficient upgrades.

Ontario

• Child-Care Fee Caps: Capped at $22/day in $10-a-day program centers.
• Affordable Transit Program: Expands discounted transit passes for low-income residents.

Social Equity Initiatives

• Indigenous Support Programs: Increased funding for education, healthcare, and housing.
• Gender Pay Gap Reporting: Employers with over 100 employees must report and address gender pay disparities.

Preparing for the Changes

These legislative updates reflect Canada’s commitment to affordability, equity, and sustainable growth. By adjusting wages, expanding social benefits, and introducing environmentally conscious incentives, Canada is prioritizing the well-being of its residents.

Stay informed and take proactive steps to adapt to these changes, ensuring you and your family make the most of the opportunities available in 2025.

At Altec Global, we understand the complexities of the Canadian immigration system and are dedicated to helping applicants overcome these obstacles. Whether you’re waiting for your PR application, navigating temporary residence delays, or seeking citizenship, our team is here to guide you through the process and help make your Canadian dream a reality.

?? Make your personalized guidance on getting the right strategy for immigrating to Canada.