Support from northerners like you keeps our journalism alive. Sign up here.

NWT’s minimum wage rising to $16.05 from September

$16.05. Emma Stuart-Kiss/Cabin Radio
$16.05, the NWT's new minimum wage, in cash. Emma Stuart-Kiss/Cabin Radio

The Northwest Territories’ minimum wage will increase from $15.20 per hour to $16.05 per hour on Sep. 1, an increase of 5.6 percent.

This year marks the first time that the territorial government has determined minimum wage increases based on the Consumer Price Index (CPI). The plan to tie minimum wage increases to CPI was first announced last fall.

The minimum wage will be adjusted annually based on the percentage change in CPI for Yellowknife and percentage change in the NWT’s average hourly wage.

“The new method of calculating the minimum wage has achieved a moderate and predictable increase to the minimum wage rate, which provides stability and certainty to the territory’s business community while helping residents of the NWT keep up with the cost of living,” the territory said in a press release published on Monday.

The CPI measures price change over time of products in eight different categories, including food, shelter and transportation.

“We recognize that the minimum wage needs to work for both employers and employees,” said RJ Simpson, the NWT’s employment minister, in Monday’s statement.

“With these planned annual increases, we’re making it easier for businesses to prepare for minimum wage adjustments, while helping to ensure the lowest paid workers in the NWT get regular pay raises.”

The Department of Education, Culture and Employment will conduct a public survey this fall to gather feedback on the new minimum wage formula.