GNWT to increase minimum wage in the Northwest Territories
Publication Date
News Release
The Government of the Northwest Territories (GNWT) has announced the 2023 adjustment to minimum wage in the Northwest Territories (NWT).
Effective September 1, 2023, the minimum wage will increase from $15.20 per hour to $16.05 per hour. This change reflects the percentage changes in the Consumer Price Index (CPI) and the average hourly wage for 2021 and 2022.
In 2022, the GNWT changed the way it calculates and adjusts the minimum wage. This change allows businesses to be better able to plan for minimum wage adjustments, as they will occur annually on September 1, and makes sure minimum wage earners receive regular, anticipated pay increases.
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 department of Education, Culture, and Employment will be conducting a public survey in the fall to get feedback on the new method for adjusting the minimum wage.
Quote(s)
“This year is the first year we’ve adjusted the minimum wage based on the formula that takes into account the cost of living. We recognize that the minimum wage needs to work for both employers and employees. 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.”
- R.J. Simpson, Minister of Education, Culture and Employment
Quick facts
The last increase to the NWT’s minimum wage occurred on September 1, 2021 and represented an increase of $1.74; from $13.46 to $15.20 per hour. Before that, the minimum wage hadn’t changed since April 1, 2018, when it went up from $12.50 to $13.46 per hour.
Beginning this year, the minimum wage rate will be adjusted annually using a formula based on the percentage change in the Consumer Price Index for Yellowknife and the percentage change in the average hourly wage in the NWT for the preceding calendar year.
The September 1, 2023 adjustment represents a 5.6% increase to the minimum wage rate.