New laws and regulations have come into effect across Canada in 2025

As of January 1, 2025, several new laws and regulations have come into effect across Canada, aiming to address issues like affordability, inflation, and social equity. Here's a summary of the key changes:

Minimum Wage Increases

• Federal Minimum Wage: Increased to $17.70 per hour from $17.30.
• Ontario: Annual adjustments continue on October 1, with a forecasted increase from the current $17.20 per hour.
• British Columbia: As of June 1, 2025, the province’s minimum wage will increase from $17.40 per hour.
• Yukon, Nova Scotia, New Brunswick: Minimum wage adjustments are scheduled for April 1, 2025, with current rates at $17.59 (Yukon), $15.20 (Nova Scotia), and $15.30 (New Brunswick).

Tax Updates Federal Income

• Tax Brackets: Adjusted for a 2.7% inflation rate.
• TFSA Contribution Limit: Remains at $7,000 annually, with a cumulative limit of $102,000 for eligible Canadians.
• RRSP Contribution Limit: Increases to $32,490 from $31,560 in 2024.
• Corporate Taxes: Small business tax rates remain at 9%, with new environmental tax credits introduced for businesses adopting green technologies.

Canada Pension Plan (CPP)

• Enhancements Employee Contributions: Rates remain at 5.95%, with a maximum contribution of $4,034.10.
• Self-Employed Contributions: Maximum contribution rises to $8,068.20.
• Additional CPP Contributions: Applies to income between $71,300 and $81,200, with maximum contributions of $396 (employee/employer) and $792 (self-employed).

Employment Insurance (EI)

Adjustments Premium Rates:

• $1.64 per $100 of insurable earnings for employees, with a maximum contribution of $1,077.48;
• $2.30 per $100 for employers, with a maximum of $1,508.47.

Quebec Rates: Lower rates at $1.31 per $100 for employees and $1.83 per $100 for employers.

EI Sickness Benefits: Extended to 28 weeks from 26 weeks in 2024.

Canadian Dental Care Plan Expansion

The plan now covers all eligible Canadians with a family income below $90,000, providing comprehensive dental care coverage.

Province-Specific Changes

• British Columbia: Introduction of a new renter’s rebate providing up to $400 annually for eligible households.
• Ontario: Implementation of a new bylaw requiring landlords in Toronto to apply for a rental renovation licence before evicting tenants for renovations, effective July 31, 2025.

These legislative updates reflect Canada's commitment to enhancing economic equity, affordability, and quality of life for its residents. Staying informed about these changes will help Canadians navigate the evolving legal landscape effectively.