Updated on February 22, 2024
Learn About the Increase in Canada’s Minimum Wage from $16 to $19 Per Hour Starting January 1st: Who’s Eligible? The Canadian territory of Nunavut has raised its minimum wage rates from 16 CAD to 19 CAD, representing an 18% increase. Unlike the federal government’s annual revision of minimum wage on April 1st, Nunavut’s wage rate increase is effective from January 1, 2024. The federal Department of Justice recommended these rates following a comprehensive survey of rising inflation among businesses and employees. For further details on the Canada Minimum Wage Increase from $16 to $19 Per Hour starting January 1st, continue reading this article.
Canada Minimum Wage Increased from $16 to $19 Per Hour from 1st January
The territorial Government has announced new minimum wages for workers, taking into account the impact on both employees and employers in terms of living and working conditions. In Nunavut, the Department of Justice has raised the federal minimum wage from $16 to $19 per hour. This increase aligns with the balance needed to address the rising costs of inflation.
The $3 increase in the Canada Minimum Wage has drawn criticism from some stakeholders. With this adjustment, Nunavut now boasts the highest minimum wage in Canada. The increase of $120 per week will help employees better manage their federal wages and monthly expenses amidst the rising cost of living.
The Government has taken these steps to enhance workers’ incomes with a positive impact. This increase will benefit both employers and employees, allowing them to better manage their financial stability. With an 18% raise, Nunavummiut are facing the highest cost of living amidst increasing inflation.
The increase in Canada’s Minimum Wage was implemented with a focus on targeting individuals most affected by inflation. Effective January 1, 2024, Nunavut workers will receive a rate of $19 per hour, applicable to all workers. This change aims to address the higher cost of living and inflation in Nunavut.
What is Minimum Wage?
A minimum wage is the lowest amount of payment legally required to be paid to a worker. These federal rates mandate the minimum hourly wage that employers must pay each worker. The Canada Minimum Wage has been set at $16.65 per hour since April 2023. These rates are adjusted on an hourly basis and are set annually in response to rising inflation.
In 2024, the Nunavut Government increased the minimum wage for residents by an additional 3 CAD on the previous rates. Every employer in Canada is obligated to pay wages in accordance with the minimum wage, as it ensures the fulfillment of basic requirements and health needs of employees. The Canada Minimum Wage guarantees fair wages, decent living standards, provides protection, and fosters overall growth for workers.
Who gets $19 in Canada?
Minimum wages are granted to workers who work under an employer. In Canada, the $19 minimum wage will be provided in the territory of Nunavut, making it the highest minimum wage rate in the country. In 2023, Nunavut had a $16 hourly wage rate.
The federal Canada minimum wage is provided to employees working in federally regulated industries. These wages typically apply to all employees above the age of 18 years. Nunavut-eligible workers will receive the $19 minimum wage, which will provide them with increased hourly payments to support both individual and household needs.
In addition to the highest wage in Nunavut, Yukon boasts the second-highest minimum wage in provincial pay, at $16.77 per hour. These rates become effective on April 1 of each year, with federal wages adjusted according to the consumer price index to accommodate rising living costs attributed to inflation. These minimum wages apply to all Canadian workers based on their respective province or territory wage rates.