Minimum wage in Northwest Territories is set through an objective formula considering inflation and wage growth across the territory. It combines the Consumer Price Index for Yellowknife and average hourly wage changes from the preceding year.
As a result, it helps businesses plan for labour costs while ensuring workers receive regular increases tied to economic conditions. Therefore, both employees and employers need to understand the current rates, calculation methods, and employer obligations in the region.
Minimum Wage in Northwest Territories for 2025
The current minimum wage in the Northwest Territories is $16.95, effective September 1, 2025. This rate is below the current minimum wage in Canada, standing at $17.75.
This gives the NWT one of the highest minimum wages across the country, reflects the high costs of living in parts of the territory and is an effort to provide a decent standard of living to low-income workers.
How the Minimum Wage is Determined in Northwest Territories
The process of setting the minimum wage rate in the Northwest Territories has evolved over time. Historically, a Minimum Wage Committee reviewed economic and social factors every two years and made recommendations to the Minister of Education, Culture and Employment (ECE), who established the rate.
However, since September 2023, the minimum wage has been determined by a formula that is adjusted on an annual basis on September 1 each year based on:
- Consumer Price Index (CPI): The CPI measures inflation based on the changing cost of a basket of consumer goods. The NWT formula uses the CPI for the capital city of Yellowknife to track local living costs.
- Average Hourly Wage (AHW): The AHW represents the overall average wage rate for all occupations in the territory. It benchmarks the minimum wage against broader pay trends.
Basing the annual adjustment on the CPI and AHW ensures the minimum wage keeps pace with the higher living costs in the NWT while providing fair compensation compared to overall pay scales. It also gives employers greater certainty in planning.
Historical Minimum Wage Rates in Northwest Territories
The first minimum wage introduced in the Northwest Territories in 1968 was just $1.25 per hour and increased by $0.25 to $1.00 every one to five years over the next 25 years.
| Year | Minimum Hourly Wage |
| 1968 | $1.25 |
| 1970 | $1.50 |
| 1973 | $2.00 |
| 1974 | $2.50 |
| 1976 | $3.00 |
| 1980 | $3.50 |
| 1982 | $4.25 |
| 1986 | $5.00 |
| 1991 | $7.00 |
After 1991, gaps emerged in how frequently the minimum wage was raised. Rates remained at $7.00 per hour before going up to $8.25 in 2003 and $9.00 in 2010. Since then, more regular increases have occurred.
| Year | Minimum Hourly Wage |
| 2003 | $8.25 |
| 2010 | $9.00 |
| 2011 | $10.00 |
| 2015 | $12.50 |
| 2018 | $13.46 |
| 2021 | $15.20 |
| 2022 | $15.20 |
| 2023 | $16.05 |
| 2024 | $16.70 |
| 2025 | $16.95 |
Switching to predictable annual adjustments based on economic conditions provides stability and fairness for both workers and businesses.
Source: https://loanscanada.ca/minimum-wage/northwest-territories/
Rules and Regulations for Minimum Wage Workers in NWT
In addition to the basic minimum wage rate, workers in NWT should be aware of key rules and regulations that come with it:
Overtime Pay
Overtime pay of 1.5 times the regular wage is required in the NWT for hours over 8 per day or 40 per week.
Holiday Pay
Employees qualify for holiday pay if they meet eligibility criteria, work the day before and after, and work on the holiday itself.
The NWT has 11 Statutory Holidays in Northwest Territories. Holiday pay is an average day’s regular wages, while working the holiday is paid at 1.5 times the regular wage.
Allowable Deductions
Deductions for board/meals and lodging are allowed only if the wage does not fall below the minimum.
Maximum deductions are $0.65 per meal and $0.80 per day for lodging.
Illegal Deductions
Wages cannot be deducted for breakage, shortages, uniforms, unpaid debts, business supplies, education benefiting only employers, or other losses.
Termination
After 90 days of employment or 25 hours per week, workers are entitled to written notice or termination pay unless fired for cause.
Youth Employment Rules
Youth workers under 17 require Employment Standards Officer authorization for night shifts (11 pm – 6 am) or work during school hours. Certain dangerous occupations, like construction, are prohibited for minors.
Impact of Cost of Living in Remote NWT Communities
The Northwest Territories covers a vast 1.3 million km2 but only has around 45,000 residents. Many live in extremely remote communities where the cost of living is dramatically higher, up to 37% above the Canadian average. Essential goods like food, housing, utilities, and fuel can cost exorbitantly more in remote areas. These high costs explain the need for higher minimum wages.
The NWT formula accounts for this through the Yellowknife-specific CPI and by benchmarking against broader territorial wages. This ensures workers can afford reasonable living standards regardless of where they reside.
Rights and Recourse for Minimum Wage Workers in NWT
Employees who earn minimum wage have workplace rights and options for recourse if those rights are violated:
- They can file employment standards complaints if paid less than the legal minimum, have unlawful deductions, or are terminated improperly.
- Rules govern the proper notice period or termination pay in lieu of wrongful termination. This depends on the specific circumstances of the termination.
- Minimum-wage workers are entitled to vacation time and vacation pay based on years of service. Any accrued vacation must be paid out when employment ends.
- Violating employers may face orders to pay compensation, fines up to $10,000 for individuals and $50,000 for corporations, and prosecution under the law.
If you find yourself in a situation where your rights are being ignored, you can turn to the Department of Education, Culture and Employment. They investigate complaints about unpaid wages, illegal deductions, and employment standard violations, and protect you from being penalized for coming forward, and make sure employers stick to the territory’s employment laws.
The bottom line
The minimum wage in the Northwest Territories is $16.70 per hour, among the highest rates in Canada. Driven by high living costs, especially in remote communities, the NWT minimum wage aims to provide fair compensation and economic security.
NWT’s workers should understand their rights and protections around minimum wage, overtime, vacation, termination, and recourse options.
You can also gain more insights about the minimum wage of other provinces and territories in Canada at:
- Minimum Wage in Newfoundland and Labrador
- Minimum Wage in New Brunswick
- Minimum Wage in Manitoba
- Minimum Wage in British Columbia
- Minimum Wage in Alberta
FAQs related to minimum wage in the Northwest Territories
When was the last increase to minimum wage in the NWT?
The most recent increase was in September 2024, when minimum wage went from $16.05 to $16.70 per hour, an increase of 4%.
How many paid holidays do minimum wage workers get in the NWT?
There are 11 paid statutory holidays that minimum wage workers qualify for if they meet eligibility requirements.
Can employers make deductions from minimum wage workers’ paychecks in the NWT?
Yes, employers can make limited deductions for meals, lodging, and accommodation, provided it does not reduce the wage below the minimum rate.
Is there a training wage for youth in the Northwest Territories?
No, there is no special training wage for youth under 18 in the NWT – they must be paid the full minimum wage.
Does the minimum wage increase if you live in a remote area of the NWT?
No, the same minimum wage applies across the territory, but it is set higher to account for the increased cost of living in remote areas.
Where can minimum wage workers report violations in the Northwest Territories?
Violations can be reported to the Employment Standards section of the NWT Department of Education, Culture and Employment.
Why is the minimum wage higher in NWT than in many other parts of Canada?
The high cost of living, especially in remote areas, means a higher wage is required to provide a decent standard of living in the territory.
