In Newfoundland and Labrador, the minimum wage is set to automatically keep pace with the cost of living. Every April 1st, the rate is adjusted based on the national Consumer Price Index, a system that provides predictability for both workers and employers without requiring new legislation each year.
This article breaks down what this system means for the province’s wage landscape in 2025. We’ll cover everything from employer obligations to what we might expect in the years to come.
Minimum Wage in Newfoundland and Labrador for 2025
Effective April 1, 2025, the general minimum wage in Newfoundland and Labrador rose 2.56% to $16.00 per hour, up from $15.60 per hour. This pay rate is lower than Canada’s minimum wage of $17.75. (Source)
This applies to all communities across the province, including St. John’s, Mount Pearl, Corner Brook, Conception Bay South, and Grand Falls-Windsor.
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.
Historical Overview of Minimum Wage in Newfoundland and Labrador
NL’s minimum wage has substantially increased from the 1950s:
| 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 2, 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 over 40/week or 8/day must be paid 1.5 times the minimum wage rate. Therefore, overtime pay is $24.00/hour based on the $16.00 minimum wage. |
| Statutory Holidays | Employees get 6 paid public holidays in Newfoundland and Labrador per year. If required to work those days, employees get 2 times their regular minimum wage. 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
Perspectives on Minimum Wage in Newfoundland and Labrador
Minimum wage hikes impact different groups, prompting debate:
Struggles of Minimum Wage Workers
Many earners say the $16.00 minimum wage does not cover basic living expenses:
- A recent study calculated the living wage in NL at $25.00 to $27.00 per hour
- Anti-poverty groups estimate the living wage in other NL communities to be around $18-20/hour.
- Minimum wage workers state they perform difficult jobs requiring skill, often serving customers.
Perspectives from Experts
Minimum wage hikes within a certain range do not significantly impact overall employment, though some job reduction occurs in high-impact sectors. However, the C.D. Howe Institute argues that earned income supplements for low-income workers are preferable to broad minimum wage hikes.
The Path Ahead for Minimum Wage in Newfoundland and Labrador
What comes next for minimum wage in NL? 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 an $18-20 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 $18 to $20 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, represents one of the highest rates in Canada.
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?
Newfoundland and Labrador has the 6th highest minimum wage out of the 13 provinces and territories.
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 industries have the most minimum wage earners in Newfoundland and Labrador?
The food services sector accounts for the highest proportion at 35% of minimum wage earners in the province.
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.
