The minimum wage in the Northwest Territories is $16.70 per hour. This rate was set on September 1, 2024, based on a formula that considers the changes in the consumer price index (CPI) and the territory's average hourly wage (AHW) over the past year.
Unfortunately, the cost of living in the Northwest Territories is especially high. This means, though, that its minimum wage is one of the highest in Canada.
Below, you'll find a review of the minimum wage in the Northwest Territories, including its history and how it compares to neighbouring territories.
Key Takeaways
- The minimum wage in NWT is $16.70 per hour.
- This rate is studied and subsequently adjusted on September 1 each year, as necessary.
- The federal minimum wage rate was raised to $17.75 per hour on April 1, 2025.
- NWT's minimum wage is the lowest among the Canadian territories, but is still quite high when compared with other provinces.
Northwest Territories minimum wage 2025
On September 1, 2024, the Northwest Territories minimum wage was set at $16.70 per hour.
This rate is studied and adjusted annually by using a formula that considers changes to the Consumer Price Index. Any rate changes take effect on September 1 of each year. While there aren't yet any plans for a minimum wage increase for 2025, this type of announcement is usually made in August.
Here’s how the minimum wage has changed in recent years:
- 2011: $10 per hour
- 2015: $12.50 per hour
- 2018: $13.46 per hour
- 2021: $15.20 per hour
- 2023: $16.05 per hour
- 2024: $16.70
How does Northwest Territories minimum wage compare with other territories?
While the higher expenses in Canada’s northern territories translate to higher minimum wages, the Northwest Territories' minimum wage is the lowest of the three territories.
Minimum wage in Nunavut is $19.00 per hour and minimum wage in Yukon is $17.94 per hour, while Northwest Territories minimum wage is $16.70 per hour.
Nunavut has the highest minimum wage in Canada.
How often does Northwest Territories minimum wage increase?
Historically, the Northwest Territories' minimum wage has been reviewed by an assigned government committee every two years. However, it's now being reviewed annually.
Recent inflation fluctuations across Canada have caused a change to this pattern, and the Northwest Territories' minimum wage is now adjusted every year. Changes are based on CPI for Yellowknife and any changes to the average hourly wage (AHW).
By adjusting rates based on the CPI and AHW, the Northwest Territories government can make recommendations based on the increases in cost of living felt by the residents of the Northwest Territories.
The most recent rate adjustment took place on September 1, 2024, when the minimum wage for this territory increased to $16.70 per hour.
Federal minimum wage increase
On April 1, 2025, the federal minimum wage was raised to $17.75 per hour. This federal rate is adjusted each year, based on CPI and rounded to the nearest $0.05.
In Canada, the federal minimum wage applies to employees working in federally regulated private sectors. This includes industries such as banks, postal and courier services, and interprovincial transportation like air, rail, road, and marine services.
FAQ
What is minimum wage in Northwest Territories?
The Northwest Territories minimum wage is $16.70 per hour as of September 1, 2024. This was increased from the 2023 rate of $16.05. There's no increase planned for 2025, but an announcement could be made in August.
When was the last minimum wage increase in Northwest Territories?
The most recent increase of Northwest Territories minimum wage was in September 2024 when it went up from $16.05/hr to $16.70/hr. There isn't a rate increase planned for 2025, but this may change.
How does minimum wage in Northwest Territories compare with other provinces and territories?
The current Northwest Territories' minimum wage is higher than several provinces, but British Columbia, Ontario, Nunavut, and Yukon all have higher rates. Currently, NWT's $16.70 per hour rate is the lowest among the Canadian territories.
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