Tip Pooling Laws in Canada (2026)
In Canada, tips are governed by each province’s employment standards law, not by federal law, so the rules depend on where your restaurant is. Most provinces now bar employers from keeping tips but let them run tip pools; Alberta and Manitoba have no tip rules at all; and Quebec is the only province with a lower minimum wage for tipped employees. The table covers every province, and the guides cover Ontario, British Columbia, Alberta and Quebec in detail.
Last reviewed October 11, 2026.
Province guides
Tip rules by province
Status on October 11, 2026. Amounts are in Canadian dollars per hour.
| Province | Minimum wage | Tipped rate | Tip protection law | Tip pools | Card fees from tips |
|---|---|---|---|---|---|
| Ontario | $17.95 (from Oct 1, 2026) | None | Yes | Allowed; owners only if they do the same work | Credit card share only (card rate or 1.5%) |
| British Columbia | $18.25 (from June 1, 2026) | None | Yes | Allowed; owners only if they do the same work | Not addressed by name |
| Alberta | $15.00 | None | No | Not regulated | Not regulated |
| Quebec | $16.60 (from May 1, 2026) | $13.30 | Yes | Only if employees set one up | Not allowed |
| Manitoba | $16.40 (from Oct 1, 2026) | None | No provision found | Not regulated | Not regulated |
| Saskatchewan | $15.70 (from Oct 1, 2026) | None | Yes, since Jan 1, 2026 | Allowed; owners only if they do the same work; arrangement posted | Not addressed by name |
| Nova Scotia | $17.00 (from Oct 1, 2026) | None | From Apr 1, 2027 | From Apr 1, 2027: allowed; owners only if they do the same work | From Apr 1, 2027: the card fee share of a tip is excluded |
| New Brunswick | $15.90 (from Apr 1, 2026) | None | Yes | At the employee’s option | Not addressed |
| Newfoundland and Labrador | $16.35 (from Apr 1, 2026) | None | Yes | No required sharing with the employer, managers or supervisors | Only deductions required by law |
| Prince Edward Island | $17.30 (from Oct 1, 2026; $17.60 on Apr 1, 2027) | None | Yes, since June 30, 2026 | Allowed under a written policy | Not allowed |
| Federal (Canada Labour Code) | $18.15, or the provincial rate if higher | None | No | Not regulated | Not regulated |
Owners, managers and tip pools
Ontario, British Columbia and Saskatchewan let employers require tip pools but limit who on the ownership side can share: owners, directors and shareholders only if they regularly do substantially the same work as the staff in the pool. That limit does not cover managers who are employees, who may share in Ontario and BC if the employer’s policy allows. Newfoundland and Labrador goes further: no employee can be required to share tips with the employer, a manager or a supervisor.
Quebec reverses the model: the employer may not impose a tip-sharing arrangement at all, and the employees set one up themselves.
Federally regulated workplaces
The Canada Labour Code covers federally regulated industries such as air transport, banking and rail, and it only says tips are not wages. Most restaurants are provincially regulated, so the provincial rules above apply to them.
Changes coming in 2027
Nova Scotia’s tip rules take effect on April 1, 2027, the same day Prince Edward Island’s minimum wage rises to $17.60. Ontario must publish its October 1, 2027 rate by April 1, 2027, and British Columbia adjusts on June 1, 2027. No province has an increase scheduled before April 1, 2027.
Tip pooling laws FAQ
Can employers keep tips in Canada?
It depends on the province. Ontario, British Columbia, Quebec, Saskatchewan, New Brunswick, Newfoundland and Labrador and Prince Edward Island bar employers from keeping employees’ tips, and Nova Scotia will from April 1, 2027. Alberta and Manitoba have no tip rules in their employment standards laws.
Is there a tipped minimum wage in Canada?
Only in Quebec: $13.30 an hour from May 1, 2026, against the general $16.60. Ontario, British Columbia and Alberta abolished their lower liquor server rates.
Can managers share in a tip pool in Canada?
In Ontario and British Columbia, yes, if the employer’s policy allows: the same-work restriction applies to owners, directors and shareholders. Newfoundland and Labrador bars requiring employees to share tips with managers or supervisors.
Can employers take credit card fees out of tips in Canada?
Ontario lets the employer keep the credit card fee share of a tip, the card rate or 1.5%, whichever is greater. Quebec and Prince Edward Island ban passing card fees to employees, and Nova Scotia will exclude the fee share from tips from April 1, 2027. Other provinces do not address card fees by name.
Other provincial sources
- Manitoba: The Employment Standards Code
- Saskatchewan: Protection of gratuities and tips
- Nova Scotia: Bill 256 (S.N.S. 2026, c. 17), as passed
- New Brunswick: Employment Standards Act
- Newfoundland and Labrador: Labour Standards Act
- Canada Labour Code
- Canada: Federally regulated industries and workplaces
This page summarizes provincial law for restaurant operators and staff; it is not legal advice. Check the linked official sources, or ask an employment lawyer, before changing how you handle tips.