The minimum wage in Newfoundland and Labrador will increase by 40 cents to be set at $16 per hour on April 1, 2025, the provincial government announced.
The minimum overtime wage rate will increase to $24 per hour.

A news release states the annual increase is required under the Labour Standards Regulations and is based on the percentage change in the National Consumer Price Index.

The last increase to the minimum wage occurred on April 1, 2024.

“Our government understands the importance of the minimum wage rate to employees and employers in Newfoundland and Labrador,” said Lisa Dempster, Minister Responsible for Labour.

“This increase is part of our commitment to regularly monitor the minimum wage in the province and ensure it remains relevant, responsive and comparable to other provinces in the country.”

Newfoundland and Labrador Federation of Labour President Jessica McCormick, however, said the increase fails to adequately address the challenges faced by workers struggling to keep up with the rising cost of living.

The decision, she said, leaves thousands of workers and their families unable to meet basic needs, with broader implications for our communities and our economy.

“Every worker deserves the dignity of being able to provide for themselves and their families. Yet, in Newfoundland and Labrador, nearly one-quarter of our workforce —approximately 23 per cent —earns less than $20 per hour, making it increasingly difficult to make ends meet,” McCormick said in a news release.

“Tying the minimum wage to inflation alone is not enough. Without more substantial increases, workers will continue to fall behind, unable to keep pace with the rising costs of essentials like housing, food, and childcare. In real terms, they will remain trapped earning $15 an hour indefinitely.”

The release noted that in August 2024, the Canadian Centre for Policy Alternatives (CCPA) released its second provincial living wage report outlining the hourly wage needed to cover basic expenses across four regions:
Central Newfoundland: $24.10
Eastern Newfoundland: $24.70
Western Newfoundland: $23.10
Northern Peninsula and Labrador: $27.30

Approximately 17,000 workers earn the minimum wage in Newfoundland and Labrador.

Thee figures, based on a family of four and accounting for tax credits, deductions and government benefits, include essential costs such as food, shelter, transportation and childcare. The gap between theliving wages and the announced minimum wage is significant, the release notes.

“The current approach to minimum wage policy is simply not meeting the needs of workers,” said McCormick. “Without meaningful action, the gap between the minimum wage and a living wage will only widen, pushing more families into poverty and further straining our social systems. Workers need – and deserve – a wage that reflects the true cost of living and allows them to thrive, not just try to survive.”

Source: Saltwire