[Canada] Prices will determine NWT’s minimum wage from 2023

In Canada, from September 2023 the Northwest Territories will use a new method of calculating the territory's minimum wage, Yahoo reports.

Following the change, the minimum wage will be calculated using a formula that combines changes in Yellowknife's consumer price index with changes in the NWT's average hourly wage.

In an August 16 press release, the NWT government reportedly said that linking the minimum wage to inflation was an increasingly popular approach across Canada.

In British Columbia, caps on rent increases have been tied to inflation for years. In March this year, the province similarly decided to adjust its minimum wage based on inflation rates.

The new federal minimum wage, introduced in December 2021, is adjusted every April based on consumer price index changes reported by Statistics Canada.

In a statement RJ Simpson - the NWT's employment minister - said, “Using this new formula to calculate the Northwest Territories minimum wage will result in predictable, measurable, and data-driven changes that will provide stability and certainty for the territory’s business community.

"Adjusting the minimum wage annually will help us keep up with the cost of living in the NWT."

Currently, the NWT's legislated minimum wage is $15.20 an hour.

Previously, a committee had regularly reviewed the territory's minimum wage and provided recommendations to the minister, resulting in an updated minimum wage every few years. That committee will reportedly be dissolved before the new system is introduced.

From 2023, the new minimum wage will be announced annually on August 1 with businesses expected to adopt it by September 1.

The territorial government said that tying the minimum wage to inflation is likely to result in an increase each year. Should a year arise in which applying the formula would result in a decrease, however, the minimum wage would simply remain unchanged that year.

Source: Yahoo

(Quotes via original reporting)

In Canada, from September 2023 the Northwest Territories will use a new method of calculating the territory's minimum wage, Yahoo reports.

Following the change, the minimum wage will be calculated using a formula that combines changes in Yellowknife's consumer price index with changes in the NWT's average hourly wage.

In an August 16 press release, the NWT government reportedly said that linking the minimum wage to inflation was an increasingly popular approach across Canada.

In British Columbia, caps on rent increases have been tied to inflation for years. In March this year, the province similarly decided to adjust its minimum wage based on inflation rates.

The new federal minimum wage, introduced in December 2021, is adjusted every April based on consumer price index changes reported by Statistics Canada.

In a statement RJ Simpson - the NWT's employment minister - said, “Using this new formula to calculate the Northwest Territories minimum wage will result in predictable, measurable, and data-driven changes that will provide stability and certainty for the territory’s business community.

"Adjusting the minimum wage annually will help us keep up with the cost of living in the NWT."

Currently, the NWT's legislated minimum wage is $15.20 an hour.

Previously, a committee had regularly reviewed the territory's minimum wage and provided recommendations to the minister, resulting in an updated minimum wage every few years. That committee will reportedly be dissolved before the new system is introduced.

From 2023, the new minimum wage will be announced annually on August 1 with businesses expected to adopt it by September 1.

The territorial government said that tying the minimum wage to inflation is likely to result in an increase each year. Should a year arise in which applying the formula would result in a decrease, however, the minimum wage would simply remain unchanged that year.

Source: Yahoo

(Quotes via original reporting)