YELLOWKNIFE –

The Northwest Territories government says it plans to increase the minimum wage by almost 5.6 per cent to reflect an increase in the consumer price index.

The territory says its minimum hourly wage will increase from $15.20 to $16.05 beginning Sept. 1.

The Northwest Territories last increased its minimum wage by $1.74 in September 2021, when it had been unchanged since April 2018.

The territorial government says beginning this year, the minimum wage will be adjusted each September.

This is the first time it is using a new formula based on the percentage change in the consumer price index for Yellowknife and the percentage change in the average hourly wage in the territory for the preceding calendar year.

The Department of Education, Culture and Employment says it is to conduct a public survey on the new method, which aims to take the cost of living into account, this fall.

“We recognize that the minimum wage needs to work for both employers and employees,” Minister RJ Simpson said in a statement Monday.

“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.”


This report by The Canadian Press was first published July 10, 2023.