Whether you’re starting your first job in St. John’s or budgeting for your family in Corner Brook, understanding minimum wage in Newfoundland and Labrador is essential for financial planning.
Every April 1st, the minimum wage rate is adjusted based on the national Consumer Price Index. This yearly update helps wages keep up with rising living costs so workers don’t lose purchasing power over time.
Our article will provide you with the current rate, the province’s wage landscape and what changes you may expect in the years ahead.
What is the Current Minimum Wage in Newfoundland and Labrador?
Effective April 1, 2025, the general minimum wage in Newfoundland and Labrador $16.00 per hour, an increase of 2.56% from $15.60 the previous year. This pay rate is lower than Canada’s minimum wage of $17.75. (Source)
The 2.56% increase matched NL’s 2024 inflation rate. Under the province’s formula, the minimum wage rises annually each April 1 by the prior year’s Consumer Price Index (CPI) percentage change, rounded to the nearest $0.04.
The minimum wage rate applies to all communities across the province, including St. John’s, Mount Pearl, Corner Brook, Conception Bay South, and Grand Falls-Windsor.
How Has Minimum Wage in NL Changed Over the Years?
The minimum wage in Newfoundland and Labrador has seen consistent growth over the past ten years.
Since 2015, the rate has increased from $10.50 to the current $16.00 per hour. This represents a total increase of $5.50, or approximately 52% growth over this period.
For more details, you can review the historical minimum wage rates in Newfoundland and Labrador in the table below.
| Year | Minimum Wage | Notes |
| February 28, 1953 | $0.50/hour (males) | First minimum wage introduced |
| May 1, 1968 | $1.10/hour (males) $0.85/hour (females) | |
| July 1, 1970 | $1.25/hour (males) $1.00/hour (females) | |
| July 1, 1974 | $1.8/hour | Equalized wages for both genders |
| January 1, 1976 | $2.50/hour | |
| January 1, 1983 | $3.75/hour | |
| April 1, 1991 | $4.75/hour | |
| October 1, 2015 | $10.50/hour | |
| October 1, 2017 | $11.00/hour | |
| April 1, 2018 | $11.15/hour | |
| April 1, 2019 | $11.40/hour | |
| October 1, 2020 | $12.15/hour | |
| October 1, 2021 | $12.75/hour | |
| October 1, 2022 | $13.20/hour | |
| October 1, 2023 | $15.00/hour | |
| April 1, 2024 | $15.60/hour | |
| April 1, 2025 | $16.00/hour | Current |
Trends evident from the data:
- The minimum wage consistently rose each decade from the 1950s through the 2010s.
- The gap between male and female minimum wages closed by 1970.
- The pace of increases has accelerated since 2010s compared to prior decades.
Source: https://www.stats.gov.nl.ca/Statistics/Topics/minimumwage/PDF/Minimum_Wage_Rate.pdf
Minimum Wage Regulations and Rules in Newfoundland and Labrador
Beyond the hourly rate, NL has necessary minimum wage regulations:
| Regulation | Details |
|---|---|
| Overtime Pay | Overtime hours worked beyond 40 hours in a week must be paid at least 1.5 times the minimum wage rate (or 1.5 times the employee’s regular wage if it is higher). Newfoundland and Labrador law does not set a separate daily overtime threshold. |
| Statutory Holidays | Employees get 6 paid public holidays in Newfoundland and Labrador per year. If required to work those days, employees are generally entitled to 2 times their regular rate of pay for the hours worked. Therefore, statutory holiday pay is currently $32.00/hour at minimum wage. |
| Deductions | Employers cannot deduct pay for costs like uniforms, cash shortages, or property damage. The only legal deductions are taxes, EI, CPP, court orders, and authorized voluntary deductions. |
| Time Off Instead of Overtime Pay | Employees can opt to receive 1.5 hours of paid vacation time for each overtime hour worked, instead of receiving pay. This banked time must be used within 3 months, and agreements must be finalized within 12 months. |
| Minimum 3-hour pay for On-Call | If called into work, employees must receive at least 3 hours of pay, even for less time worked. This does not apply if already scheduled for <3 Hours. |
In Newfoundland and Labrador, employers who do not follow these rules may have to pay fines or face other penalties under NL’s Labour Standards Act.
Source: Minimum wage rates and overtime rules in Canada – cfib-fcei.ca
Is Minimum Wage in Newfoundland and Labrador Enough to Cover the Cost of Living?
A living wage is the hourly rate needed to cover basic expenses for a modest standard of living, including rent, food, transportation, childcare, and other necessities.
According to a 2024 CBC report for Newfoundland and Labrador, the living wage is estimated at $25.00 to $27.00 per hour, depending on family size and location. This means the current minimum wage of $16.00 falls $9 to $11 per hour short of what’s considered sufficient for basic needs.
In other words, minimum wage sets a legal floor for wages, but wasn’t designed to fully cover all living expenses for all family configurations.
While minimum wage adjusts annually with the Consumer Price Index, cost-of-living increases in housing and food often outpace general inflation. The living wage gap is particularly acute in St. John’s, where housing costs are 20-30% higher than in rural areas of the province.
As a result, workers earning minimum wage in Newfoundland and Labrador often face difficult choices: living with roommates or family, delaying major purchases, relying on food banks, or working multiple jobs to bridge the income gap.
What’s the Future of Minimum Wage in Newfoundland and Labrador?
Minimum wage in Newfoundland and Labrador changes every year, so it’s helpful to know what might come next. Here are 3 considerations:
Potential Future Increases
As mentioned, the current formula indexes future increases to inflation. This will likely result in a modest minimum wage hike in April 2026 and beyond.
However, if inflation cools substantially in 2025, the formula may only trigger an increase of a few cents. Groups calling for a living wage argue the formula should include other benchmarks like living costs.
The Call for a $25-$27 Living Wage
Living wage estimates aim to quantify the hourly rate needed to afford necessities and participate in the community.
Anti-poverty groups estimate a living wage in Newfoundland and Labrador’s major centres is around $25 to $27 per hour, significantly above the current $16.00 minimum wage.
They contend the minimum wage must rise to close this gap and deliver income security. However, governments also need to balance costs for businesses.
Ongoing Issues to Monitor
Looking ahead, key issues to monitor around minimum wage include:
- Consistent reviews: Regularly re-evaluating benchmarks and costs through forums like the Minimum Wage Review Committee.
- Support programs: Ensuring transitional supports are in place for vulnerable employers like non-profits and rural small businesses.
- Enforcement: Protecting vulnerable workers through proactive enforcement of regulations.
- Macro impacts: Tracking more significant impacts on inflation, spending and the labour market to guide policy.
The bottom line
Newfoundland and Labrador’s minimum wage of $16.00/hour, after considerable recent increases, now sits in the middle of the pack compared with other Canadian provinces and territories.
The ongoing debate focuses on whether it provides a decent standard of living for workers or imposes high costs on businesses. Governments hope to strike the right balance with the minimum wage policy by carefully assessing the impacts and balancing these factors.
Each province and territory in Canada sets their minimum wage rates and standards. Explore our series on minimum wage at:
- Minimum Wage in British Columbia
- Minimum Wage in Manitoba
- Minimum Wage in New Brunswick
- Minimum Wage in Alberta
- Minimum Wage in Nunavut
FAQs related to minimum wage in Newfoundland and Labrador
When was the last increase to minimum wage in Newfoundland and Labrador?
The last increase to minimum wage in Newfoundland and Labrador was on April 1, 2025 when it was raised from $15.60 to $16.00 per hour.
How frequently is minimum wage increased in Newfoundland and Labrador?
Minimum wage is increased annually on April 1st in Newfoundland and Labrador based on the prior year's CPI.
How does Newfoundland and Labrador's minimum wage compare to other provinces?
As of April 1, 2025, Newfoundland and Labrador’s $16.00 minimum wage is higher than Alberta, Saskatchewan and New Brunswick, roughly in line with Manitoba, but lower than British Columbia, Ontario, the territories and some Atlantic provinces. Exact ranking can change over time as other jurisdictions update their rates.
Why are there exemptions to the minimum wage in Newfoundland and Labrador?
Exemptions in certain sectors exist to account for unique workforce needs. For example, fish harvesters are exempt as they are paid through catch shares, and camp counselors due to provision of room/board.
What alternatives exist besides raising minimum wage to support low income earners in Newfoundland and Labrador?
Other options include earned income tax benefits, guaranteed annual income programs, sectoral wage supports, and investing in skills development and training.
