An average housekeeping worker earning $20 per hour could earn just $7 an hour under new guidelines from the federal government.
The new minimum wage, set to be rolled out over three months, would go up from $8.20 per hours to $10 per hours over the next two years.
A previous minimum wage was $8 an hour.
Under the new guidelines, employees would receive a $10.10 bonus if they have at least two years of experience, as well as a $1.00 per hour pay bump for employees who have more than five years of service.
The minimum wage is set to increase from $10 to $11 per hour starting July 1.
Housekeeping workers also would receive two additional paid holidays.
“We’ve done this for decades, and we’ve seen the benefits and the costs,” said Erin Stewart, deputy minister of labour.
“It’s not going to make us any more wealthy than we already are.
We have a lot of work to do.”
The changes are a response to concerns raised by unionized workers that the federal minimum wage could fall below $20, which would result in many workers receiving a salary that’s significantly below the poverty line.
Housekeepers are required to report overtime hours, which the government has estimated to be as high as 16 hours a week.
The government says it is working to improve the reporting process and to make sure that employees have the necessary information to report their earnings accurately.
The wage hikes are a part of a broader labour market overhaul to reduce the size and impact of Canada’s labour force.
The changes to the minimum wage will apply to federal employees starting in July.
The increase will also apply to provincial and territorial employees starting July 15.