What is minimum wage?

In the Northwest Territories (NWT), the minimum wage is $16.70 per hour.

The minimum wage is the lowest wage rate an employer can legally pay an employee.

How is the minimum wage determined in the NWT?

The minimum wage is adjusted annually on September 1 using a formula based on the percentage change in the Consumer Price Index (CPI) for Yellowknife and the percentage change in the average hourly wage (AHW) in the NWT for the preceding calendar year.

Using the CPI as a basis for adjusting the minimum wage rate allows the minimum wage to keep up with the increasing costs for NWT residents, and with other jurisdictions’ minimum wage rates. Many jurisdictions, and the federal government, use the CPI as a basis for making annual adjustments to their minimum wage rates.

Businesses can plan for the minimum wage rate to be adjusted on September 1 of every year, and the annual increases will be smaller, which will allow businesses to better absorb the impact of each increase.

This formula means there will be an increase in the minimum wage most years. However, if the percentage change in the CPI or AHW were to decrease below zero in a given year, and the application of the formula resulted in a decrease to the minimum wage, the minimum wage rate would remain the same.