Among Canadian provinces and territories, Yukon has the second-highest minimum wage, as it goes up each year with inflation to match the rising cost of living. Discover more about the Yukon’s current rates, calculation methods, and various exemptions that affect workers and employers to navigate the territory’s unique employment landscape in this article.
What is the Minimum Wage in Yukon for 2026?
As of April 1, 2025, the minimum wage in Yukon rose to $17.94 per hour, an increase of $0.35 from the previous rate of $17.59 per hour in 2024.
This increase affects all Yukon workers in communities including Whitehorse, Dawson City, Watson Lake, Haines Junction, Carmacks, Mayo, Faro, Teslin, Ross River, Pelly Crossing, Old Crow, Carcross, Tagish, Beaver Creek, and every other community across the territory.
This latest increase in Yukon’s minimum wage is tied to the 2024 Consumer Price Index (CPI) for Whitehorse. Under the current policy, Yukon’s minimum wage is adjusted annually based on the Whitehorse CPI to keep pace with inflation and rising living costs.
Source: https://yukon.ca/en/news/yukon-minimum-wage-increase-april-1-2025
Yukon Minimum Wage Rate History (2020–2025)
Over the past 5 years, Yukon has seen steady increases in its minimum wage:
| Effective Date | Minimum Wage |
| April 1, 2020 | $13.85 per hour |
| August 1, 2021 | $15.20 per hour |
| April 1, 2022 | $15.70 per hour |
| April 1, 2023 | $16.77 per hour |
| April 1, 2024 | $17.59 per hour |
| April 1, 2025 | $17.94 per hour |
How Minimum Wage is Determined in Yukon
The territory’s Employment Standards Act mandates Yukon’s minimum wage rate. This legislation gives the Yukon government the authority to set the minimum hourly wage for employees.
Historically, minimum wage rates in Yukon were set based on recommendations from the Employment Standards Board. This independent board reviewed factors like the cost of living, wages in other jurisdictions, and potential impact on the labour market.
While a form of indexing to the Consumer Price Index (CPI) was introduced as early as 2007, the board continued to play a key role in reviewing and recommending rates.
In 2021, a new approach was introduced to adjust the minimum wage annually based on the CPI for Whitehorse (Source). This change in methodology came about through an agreement between the Liberal and NDP caucuses, known as CASA.
Tying the minimum wage to CPI allows rates to keep pace with inflation and the rising cost of living in Yukon each year. The current government has maintained this indexing method, , with annual increases to the minimum wage.
Who is Covered by the Minimum Wage in Yukon?
Yukon’s minimum wage legislation applies to most hourly employees in the territory. This includes:
- Employees in retail, food service, childcare, healthcare, tour companies, and other sectors
- Part-time, full-time, permanent, and casual hourly workers
- Employees who earn tips and commissions in addition to hourly pay
Exempt Categories of Workers in Yukon
However, not every employment situation falls under basic regulations. Here are 6 worker categories that are exempt from standard minimum wage rules.
Government Contract Employees
Instead of the standard minimum wage, government contract workers are covered by set rates under the Fair Wage Schedule 2025:
| Category | Hourly Wage | Sample Roles |
| A | $41.62 | Electricians, mechanics |
| B | $37.31 | Roofing, drilling |
| C | $33.10 | Truck drivers, cook’s helpers |
| D | $30.04 | Labourers, security workers |
Commission Workers
Commission-only employees are not paid a standard hourly wage, but their commission earnings over a pay period must equal at least the minimum wage for the hours they worked. If their earnings are less, the employer must pay the difference.
For commission jobs with an hourly wage, the employee gets their hourly pay plus commissions, with hourly pay meeting minimum standards.
Piecework Employees
Individuals paid per unit for piecework/manufacturing do not have a standard minimum hourly wage. Even when paid by the piece, an employee’s total pay for piecework must be at least the minimum wage for the hours worked. If it is not, the employer must pay the difference.
Taxi Drivers
Taxi drivers must be paid in a way that ensures their total earnings are at least equal to the minimum wage for all their regular hours worked in a pay period.
However, they are specifically exempt from the rules governing overtime pay and limits on hours of work. This means they do not receive extra pay for working more than 8 hours a day or 40 hours a week.
Federally Regulated Industries
Employees in federal sectors like banking, telecoms, airports, and transportation are subject to the federal minimum wage. However, if Yukon’s territorial minimum wage is higher, employers must pay at least the higher Yukon rate.
Babysitters
Babysitters hired informally are fully exempt from minimum wage laws in Yukon.
Unless exempt, all hourly employees can earn at least the Yukon minimum wage. Salaried or commissioned employees who do not earn hourly wages are not subject to the same regulations.
Minimum Wage Requirements for Statutory Holidays in Yukon
The Employment Standards Act establishes minimum holiday pay requirements in Yukon. Under the legislation, employees are entitled to take general holidays off with pay. General statutory holidays in Yukon include:
- New Year’s Day
- Good Friday
- Victoria Day
- National Indigenous Peoples Day
- Canada Day
- Discovery Day
- Labour Day
- National Day for Truth and Reconciliation
- Thanksgiving Day
- Remembrance Day
- Christmas Day
Employees who are given a general holiday off must receive holiday pay equivalent to their regular daily wages. For hourly employees, this equals their hourly rate multiplied by their regular hours.
Alternatively, the employee can work on the holiday and receive overtime pay of 1.5 times their regular wage. They can also receive regular daily pay for the holiday shift and an alternate day off later.
For employees who work part-time or have changing schedules, calculating holiday pay is a two-step process. First, you must meet certain conditions to qualify for the paid holiday. Second, the pay is calculated using a special formula based on your recent earnings.
What is the Difference Between Living Wage and Minimum Wage in Yukon?
A living wage is distinct from the minimum wage, though the two concepts are often compared. As of 2024, their living wage for Whitehorse was $22.72 per hour, based on the costs for a household with two working parents and two children. It is over $7.97 per hour, higher than the current minimum wage in Yukon of $17.94.
The living wage calculates the hourly pay rate needed for a household to cover basic expenses in their community. It aims to provide a decent standard of living, whereas the minimum wage merely sets a bare minimum floor.
Living wage rates are determined independently by research organizations. In Yukon, the Yukon Anti-Poverty Coalition publishes annual living wage estimates.
While Yukon has the second-highest minimum wage in Canada as of April 1, 2025, it remains below living wage estimates. However, the government has achieved regular minimum wage hikes in recent years to help bridge this gap.
Arguments For and Against Minimum Wage in Yukon
There are longstanding debates around minimum wage laws’ merits and potential drawbacks. Some key arguments include:
Arguments For Minimum Wage in Yukon
- Ensures a fair baseline pay to cover basic living expenses
- Can help boost incomes for low-wage workers
- May reduce poverty, though the evidence is mixed
- Contributes to greater economic equality
- Stimulates consumer spending when workers have more income
Arguments Against Minimum Wage in Yukon
- Raises costs for employers, potentially forcing cuts in staff or hours
- Could lead to job losses, though the evidence is again mixed
- Not well targeted to families in need; many minimum wage earners are students
- Higher prices for goods and services may cancel out gains for consumers
- May encourage automation to replace workers
Overall, there are reasonable arguments on both sides of this issue regarding potential benefits versus unintended consequences. Policy experts and economists continue to debate the true impacts of minimum wage laws.
Explore more articles about minimum wage across Canada:
- Minimum Wage in Newfoundland and Labrador
- Minimum Wage in Nova Scotia
- Minimum Wage in Ontario
- Minimum Wage in Quebec
- Minimum Wage in Northwest Territories
- Minimum Wage in Saskatchewan
- Minimum Wage in Nova Scotia
- Minimum Wage in Alberta
The bottom line
Yukon has taken meaningful steps to ensure its minimum wage keeps up with the rising cost of living in the territory. After years of infrequent increases, minimum wage rates are indexed annually to inflation.
However, debate continues about the fairness of the minimum wage policy and its economic impacts. While rates are improving, some argue that Yukon’s minimum wage remains below an adequate living wage.
Going forward, the path ahead is likely to involve gradual minimum wage hikes indexed to inflation. However, finding the right balance between fair pay and economic stability will remain challenging.
FAQs related to minimum wage in Yukon, Canada
How is Yukon's minimum wage determined?
Yukon's minimum wage is determined based on the annual Consumer Price Index (CPI) for Whitehorse. It is adjusted each year according to the CPI to keep pace with inflation.
How often does Yukon increase the minimum wage?
Yukon increases the minimum wage annually on April 1st based on the previous year's CPI for Whitehorse. The rate typically goes up slightly each year.
Are Yukon workers entitled to holiday pay?
Yes, employees in Yukon are entitled to regular holiday pay for the 10 general (statutory) holidays. Regular daily wages must be paid for time off on a holiday.
Is Yukon's minimum wage the highest in Canada?
As of 2025 Yukon has the second-highest minimum wage in Canada at $17.94 per hour, slightly below Nunavut's rate of $19.00.
How does minimum wage compare to a living wage in Yukon?
Yukon's minimum wage is lower than living wage estimates for the territory. The living wage for Whitehorse was calculated at $22.72 per hour in 2024.
