Minimum Wage in Nunavut: 2026 Updates and What to Expect

The remote location, limited infrastructure, and harsh climate in Nuvanut create unique challenges that make everyday living more expensive than in other parts of Canada.

To help balance these higher costs, Nunavut has set the highest wage rate in the country. Understanding your rights under the Minimum Wage in Nunavut is important so you can ensure fair pay, proper compensation, and strong workplace protection.

What is the Minimum Wage in Nunavut for 2026?

The current minimum wage in Nunavut is $19.75 per hour, as of September 1, 2025, which makes it the highest among Canada’s minimum wages. This significant bump was intended to relieve the cost of living and escalating inflation.

This minimum wage covers nearly all workers, regardless of their age or profession, with only a few specific exceptions. It covers all territorial workers, including those in Iqaluit, Rankin Inlet, Cambridge Bay, Arviat, Baker Lake, Igloolik, Pond Inlet, Kugluktuk, and Gjoa Haven.

To keep pace with economic changes, Nunavut uses a legislated annual adjustment process. Each year, the newly calculated rate is publicly announced by July 31st. This adjusted wage then officially takes effect on September 1st and is published for public record in the Nunavut Gazette. (Source)

Will the Minimum Wage in Nunavut Increase Next Year?

Yes, the minimum wage in Nunavut is expected to increase in 2026, though the exact amount and implementation date have not been officially announced.

Effective 2025, Nunavut will implement an annual minimum wage adjustment, as required by law. This adjustment will occur each year on September 1st and will be calculated using a specific formula that considers two key economic indicators:

• The Iqaluit Consumer Price Index (CPI)
• The Average Hourly Wage (AHW)

Regardless of indexing, the government emphasizes that the minimum wage will continue to be reviewed annually to account for economic conditions in the territory.

Who is Exempt from Minimum Wage in Nunavut?

While most employees in Nunavut are entitled to the general minimum wage, certain employment categories are exempt:

• Trappers and commercial fishery workers: These traditional harvesting sectors constitute substantial portions of Nunavut’s economic output. When employers in these industries provide lodging or board, they may deduct these benefits from wages paid.
• Traditional harvesting activities: Workers engaged in various forms of traditional harvesting beyond trapping and fishing may be exempt, depending on the specific nature of their work.
• Professional students in certain regulated professions: Educational institutions placing students in work experience programs must obtain permits from the Labour Standards Officer, who determines appropriate wage rates, if any.

That said, these exemptions are a direct reflection of Nunavut’s unique economy, where traditional harvesting and fishing remain fundamental to both local employment and economic activity.

Why is Minimum Wage in Nunavut Higher than Other Provinces?

The simple answer is that Nunavut has the highest cost of living in the entire country, and the minimum wage needs to reflect that reality. To understand why everything is so expensive, you just have to look at a map.

Unlike the rest of Canada, Nunavut has almost no roads connecting its remote communities to each other or to the south. This means nearly every single item, from food and clothing to building materials and vehicles, must be shipped in by plane or by boat.

• By Air: Flying goods in is possible all year, but it’s incredibly expensive. This is the only option for fresh foods like milk and vegetables, which is why they cost so much more on northern shelves.
• By Sea: The other option is the annual “sealift,” where ships bring supplies during the short summer when the Arctic ice melts enough for them to pass. This short window forces families and businesses to buy and store almost everything they’ll need for an entire year all at once.

These immense transportation challenges are the main reason why everyday life is so much more expensive in Nunavut, requiring a higher minimum wage to help residents afford the basics.

Additional Employment Rules in Nunavut

Nunavut has extra employment rules that go beyond minimum wage, and workers should understand how these rules affect their hours and job rights.

Young Person Employment Rules

To ensure the safety and well-being of employees under the age of 17, specific rules are in place:

• Prohibited hours: Young persons are not permitted to work between 11 PM and 6 AM without written Labour Standards Officer approval.
• Permission in the construction industry: Before hiring a young person for a job in the construction industry, an employer is required to get a permit from a Labour Standards Officer. This process ensures the proposed work is safe and does not pose a danger to the employee. The officer will review the job duties in line with all safety legislation, including the Safety Act.
• General Hiring: For jobs outside of construction, it is still considered a best practice for employers to apply for approval when hiring young persons to ensure all legal standards are met.

Overtime Rules in Nuvanut

In Nunavut, overtime begins after an employee has worked 8 hours in a single day or 40 hours in a week.

An important exception applies to weeks that include a general holiday. In such cases, the standard hours of work for that week are reduced to 32. Overtime is then calculated for any hours worked beyond those 32 hours.

Overtime pay is calculated at a rate of 1.5 times the regular wage. Besides, there are strict limits by the Act on the maximum allowable hours:

• A maximum of 10 hours per day
• A maximum of 60 hours per week

Employers cannot require or permit work beyond these limits without special authorization.

Source: Nunavut Labour Standards Compliance Office – Hours of Work

What Deductions Apply to Minimum Wage Workers in Nunavut?

Nunavut’s minimum wage is subject to both territorial and federal rules, which means certain standard deductions apply to every worker. Here is a simple breakdown of what can be deducted from your paycheque:

Canada Pension Plan (CPP)

The Canada Pension Plan is a federal program that all Canadian employees and employers contribute to for retirement income. For 2026, CPP contributions consist of two parts:

• Base CPP: base contribution rate is 5.95% on annual earnings between the $3,500 basic exemption and the first earnings ceiling of $74,600. The maximum an employee will contribute for this portion is $4,230.45.
• Second Additional CPP Contribution (CPP2): A second contribution, CPP2, applies at a rate of 4.00% on earnings between the first ceiling ($74,600) and a second, higher earnings ceiling of $85,000. The maximum an employee will contribute for this second portion is $416.00.

Employment Insurance (EI) Premiums

Employment Insurance is another federal program funded by premiums paid by employees and employers. For 2026, Nunavut workers pay EI premiums of 1.63% on their insurable earnings, up to a maximum annual amount of $68,900. This means the maximum an employee will pay in EI premiums for the year is $1,123.07.

Income Taxes

As a territory, Nunavut can set its tax rates. For the 2026 tax year, income taxes are deducted from minimum wage earnings according to 4 tax brackets, depending on income level:

• Up to $55,801: 4%
• $55,801.01 to $111,602: 7%
• $111,602.01 to $181,439: 9%
• Over $181,439.01: 11.5%

It is important to remember that in addition to territorial tax, federal income tax is also deducted from your pay.

Other Deductions

Some additional deductions may apply when required by law, for example, garnishments, child support, or insolvency-related payments. These deductions must be authorized in writing by the employee.

Source: Payroll Deductions Tables – CPP, EI, and income tax deductions – Nunavut

Perspectives on the Minimum Wage in Nunavut

Workers, businesses, and economists have reacted mixedly to Nunavut’s $19.75 per hour minimum wage, which took effect on September 1, 2025. Uncertainties remain about its potential impacts on the territory’s economy.

Prior to this change, consultations by the Government of Nunavut found workers eager for increased earnings, but businesses were concerned about remaining viable and cutting staff. Retailers like Arctic Co-op highlighted potential pressures on food costs.

Some economists have suggested that minimum wage hikes lead to increased unemployment as businesses struggle with costs. Others dispute this, arguing that improved worker productivity offsets higher wage expenses for employers. The actual impacts in Nunavut remain uncertain.

Given the mixed perspectives, the Government of Nunavut emphasizes that an ongoing review of the minimum wage will be essential to strike the right balance between Nunavut’s economy and affordability. This ongoing review process led to the most recent increase.

Why is the Minimum Wage So Important in Nunavut?

The minimum wage in Nunavut is a major topic because the territory has the highest cost of living in all of Canada. The price of everything from food to housing is extremely high, so the minimum wage isn’t just a baseline; it’s a crucial tool that helps people afford to live.

Four key things make Nunavut’s economy different and highlight the need for a fair wage:

• Extremely high costs – Prices for necessities like food, housing, and utilities are dramatically inflated compared to elsewhere in Canada due to supply chain constraints and limited infrastructure.
• Reduced employment options – With a small population of just 38,780 residents across a massive geographic area, the options for economic development are restricted. This results in fewer jobs and income sources.
• Reliance on country food – With store-bought food prices so high, many residents rely heavily on hunting, fishing, and foraging to meet nutritional needs. An increased minimum wage in Nuvanut enables more time and resources for these activities.
• Growing social assistance needs – High costs without corresponding incomes have led to a dependency on income support and social assistance programs in Nunavut. An increased minimum wage can reduce reliance on these programs.

So, how does a higher minimum wage actually help? In Nunavut, a stronger minimum wage plays an essential role and creates two key benefits:

• It helps people afford the basics. Most importantly, it gives workers the power to buy food, pay rent, and provide for their families without falling into a financial crisis.
• It boosts local businesses. When people have a little extra money after paying their bills, they spend it at local shops and restaurants, which helps the whole community thrive.

In Canada, each province and territory has the autonomy to set its own minimum wage rate for provincially regulated workers:

• Minimum Wage in Newfoundland and Labrador
• Minimum Wage in New Brunswick
• Minimum Wage in Manitoba
• Minimum Wage in Alberta
• Minimum Wage in Northwest Territories
• Minimum Wage in Nova Scotia

The bottom line

An adequate minimum wage in Nuvanut is vital for Canada’s northernmost territory to ensure the affordability of living in an exceptionally harsh climate and remote environment.

While uncertainties exist around potential impacts, the increase offers much-needed financial relief for the territory’s workers struggling with its world-leading costs.

Going forward, regular reviews and careful adjustments will be important to keep the minimum wage in line with Nunavut’s real living costs.

FAQs related to minimum wage in Nunavut, Canada

Article Sources

• Nunavut Minimum Wage 2025 – loanscanada.ca