Workers to get $0.65 more per hour with new minimum wage
Northwest Territories (NWT) will increase the minimum wage rate in the territory later this year.
Effective Sept. 1, 2024, the territorial base pay rate will be $16.70 per hour, up from the current $16.05 per hour rate.
In making the increase, NWT used a formula based on the percentage change in the Consumer Price Index (CPI) and the average hourly wage for 2023.
“This is the second year that the Northwest Territories has adjusted the minimum wage using a new calculation that results in predictable annual increases,” said Caitlin Cleveland, minister of education, culture and employment. “This improved method helps those earning minimum wage keep up with the cost of living in the territory while supporting businesses in attracting and retaining employees.”
In April, the minimum wage in federally regulated sectors increased from $16.65 to $17.30 per hour on April 1.
Minimum wage rate adjustment formula
In 2022, NWT changed the way it calculates and adjusts the minimum wage in the territory. The formula-driven approach “ensures moderate and predictable increases to the minimum wage rate, providing stability and certainty to the territory’s business community while helping residents manage the rising cost of living,” according to the territorial government.
This year’s increase is the second adjustment of NWT’s minimum wage using the formula. By using this new formula, the NWT’s minimum wage increase in 2024 is larger than it would have been if it was adjusted based on Yellowknife’s Consumer Price Index for 2023 alone, according to the government.
According to the government, the shift to annual formula-based adjustments is intended to:
- keep up with the increasing costs for NWT residents
- keep up with other jurisdictions’ minimum wage rates
- enable businesses to better plan for increases to the minimum wage rate
- help ensure the lowest earners receive a pay raise each year
- increase transparency in government decision-making
In 2023, NWT's minimum wage increased to $16.05 per hour from $15.20 per hour, equivalent to a 5.6% upward adjustment.
Earlier this year, NWT surveyed nearly 200 workers and over 30 employers regarding minimum wage adjustments.
The survey found that most employees felt that the increase to the minimum wage rate in 2023 using the new formula was too low. Surveyed employers, meanwhile, were divided on how they felt about the 2023 adjustment.
Saskatchewan, Nova Scotia and all Atlantic Canadian provinces have also announced minimum wage rate adjustments this year.
