Nunavut’s minimum wage will rise to $19.75 an hour on Sept. 1, up from the current hourly rate of $19.
In a news release Tuesday, the Government of Nunavut announced it is taking a new approach to calculating the territory’s minimum wage.
“Nunavut will have a system in place to ensure our minimum wage is more responsive to the rising cost of living and economic realities of the territory,” Justice Minister Pamela Gross said in the release.
The new hourly rate of $19.75 represents a four per cent increase to the rate set in January 2024. At that time, the rate jumped to $19 from $16 — an 18 per cent increase, making it the highest minimum wage in Canada.
David Akeeagok, who was the justice minister at the time, said then that the sharp 2024 increase was due to Nunavut’s high cost of living and inflation.
The GN said Tuesday the minimum wage will now be adjusted annually on Sept. 1 using a formula incorporating the percentage change in the consumer price index for Iqaluit and the average hourly wage in Nunavut from the previous year.
The Consumer Price Index, calculated by Statistics Canada, measures the change in the price of a standard “basket of goods” over a given period of time. It is a metric used to measure the rate of inflation.
