The Minimum Wage in Newfoundland and Labrador In 2022
Publié le 10 November 2022
A series of increases will raise the minimum wage in Newfoundland and Labrador in 2022 and beyond, affecting employees across the province.
Workers in Canada’s most easterly province will notice changes to their paychecks soon, with 3 increases to the minimum wage Newfoundland and Labrador taking effect in the next 12 months. It will mean a boost for people working in all industries across the province, but also a sign of economic challenges to come.
What is the Minimum Wage in Newfoundland and Labrador in 2022?
Effective October 1st, 2022, the minimum wage in Newfoundland and Labrador is $13.70 per hour. This supersedes the previous minimum wage increase that took place in April 2022, which established a $13.20 minimum wage throughout the province.
In 2021, the minimum wage in Newfoundland and Labrador was $12.75 per hour, meaning after the October increase, the wage rate will have increased $0.95 in one year. And this is not the end of the upcoming changes to Newfoundland’s minimum wage.
A $15.00 Minimum Wage in Newfoundland and Labrador?
The provincial government has also announced two additional minimum wage increases. On April 1st, 2023, the minimum wage in Newfoundland and Labrador will increase to $14.50 and then again to $15.00 per hour effective October 1st, 2023. This means that the minimum wage in Newfoundland and Labrador is rising a total of $2.25 — 17.7% — in the span of 2 years.
This comes after the provincial Minimum Wage Review Committee issued their report recommending such increases. Furthermore, the same report recommended fixing the minimum wage in Newfoundland and Labrador to the rate of inflation, plus an additional 1% annually. The government has not yet committed to such measures moving ahead.
Will This Affect Small Businesses?
In order to help small businesses with the minimum wage increase, the provincial government has created the Transitional Support Program. This program is available to all businesses with 20 employees or less who earn minimum wage. It will provide $0.50 per hour per employee to help businesses transition to the new minimum wage. Businesses must meet certain criteria and apply to be part of the program.
What About The Alternative Minimum For Tip-Earners?
A number of provinces in Canada have had an alternative minimum wage for people employed in jobs where they can earn extra gratuities. Once common across the country, this practice has been almost fully eliminated over the past decade, with Ontario being the most recent province to get rid of its alternative minimum wage. Newfoundland and Labrador does not have an official alternative minimum wage, meaning that the same minimum wage applies to all workers.
What Is The Average Salary In Newfoundland and Labrador?
The average salary in Newfoundland and Labrador was $58,843.20 at the end of 2021. This takes into account workers in all industries, meaning the average salary in specific jobs sectors can vary from this amount. At the 2022 Newfoundland minimum wage of $13.70 per hour, a person working 37.5 hours per week will earn $26,715 before taxes over a 12-month period.
What is the Living Wage in Newfoundland and Labrador
The definition of living wage is the actual salary or hourly wage required to meet the living costs in specific cities and communities. Large cities typically have a higher cost of living, rural communities tend to have lower costs of living, although exceptions do exist. A 2019 report found that the living wage in the provincial capital of St. John’s was $18.85 per hour, which would be $20.13 in 2022 when adjusted for inflation.
Does It Keep Pace With Inflation?
In Newfoundland and Labrador, the rate of inflation was 6.1% in September 2022. This is actually lower than the average inflation rate of 7.6% in the rest of Canada. While the fact that the minimum wage in Newfoundland is set to increase 17.7% over the next 12 months seems to bode well, the fact is that Newfoundlanders have been paying these inflated living costs and consumer prices before the minimum wage increase takes effect. While it will certainly benefit workers in the province, inflation continues to be a concern.
The minimum wage in Newfoundland and Labrador in 2022 is $13.70 per hour, effective on October 1st. With two additional increases announced by the provincial government, the Newfoundland and Labrador minimum wage will be $15.00 per hour by October 2023. A wage increase will help many people working in all industries across the province.
