In this article, you will get to know about the Canadas Minimum Wage Increase from $16 to $19 Per Hour starting January 1st: Who gets it? The Canadian territory of Nunavut has raised its minimum wage rates from 16 CAD to 19 CAD, marking an 18% increase. While the Federal Government revises the minimum wage annually on April 1st, Nunavut has proactively raised their wage rate effective January 1, 2024. This change was recommended by the federal Department of Justice after a comprehensive survey addressing rising inflation affecting businesses and employees. To learn more about the Canada Minimum Wage Increase from $16 to $19 Per Hour starting January 1st, continue reading this article.
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Canadas Minimum Wage Increased from $16 to $19 Per Hour starting January 1st
The territorial Government of Nunavut has announced new minimum wage rates for workers. These rates reflect the cost of living and working conditions for both employees and employers. The Department of Justice in Nunavut has raised the minimum wage from $16 to $19 an hour to keep up with rising prices.
With this $3 increase, some stakeholders have criticized the new wage rate. Nunavut now has the highest minimum wage in Canada, which translates to an extra $120 weekly for employees, helping them manage their federal wages and monthly expenditures amidst the rising cost of living.
This measure aims to improve workers’ incomes and positively impact both employers and employees by reducing financial vulnerability. The 18% raise comes as Nunavummiut face the highest cost of living in the country, exacerbated by rising inflation.
The increase in Canada’s Minimum Wage is targeted at those most affected by inflation. Starting January 1, 2024, Nunavut workers will receive $19 per hour, applicable to all workers. This change aims to combat the higher cost of living and inflation in Nunavut.
What is Minimum Wage?
A minimum wage is the lowest legal payment that must be paid to a worker. In Canada, the federal minimum wage was set at $16.65 per hour as of April 2023. These hourly rates are adjusted annually to reflect inflation.
In 2024, the Nunavut Government has set a new minimum wage for its residents, increasing the previous rate by 3 CAD. All employers in Canada must adhere to the minimum wage, ensuring employees meet basic living and health needs. The Canada Minimum Wage ensures fair wages, decent living standards, protection, and overall growth for workers.
Who gets $19 in Canada?
The $19 minimum wage will be provided to workers in the territory of Nunavut, which now has the highest minimum wage rate in Canada. In 2023, Nunavut had a 16 CAD hourly wage rate.
The federal minimum wage in Canada is applicable to employees in federally regulated industries and generally applies to all employees over the age of 18. Eligible workers in Nunavut will benefit from the $19 minimum wage, enhancing individual and household income through higher hourly payments.
Alongside Nunavut, Yukon has the second-highest minimum wage in Canada at $16.77 per hour. These rates are effective from April 1st each year and are adjusted based on the consumer price index and rising inflation. These minimum wages apply to all Canadian workers according to their province or territory’s wage rates.