Newfoundland And Labrador Minimum Wage 2022

Newfoundland And Labrador Minimum Wage 2022

Written by Lisa Rennie
Fact-checked by Caitlin Wood
Last Updated March 15, 2022

The minimum wage is the lowest amount that an employer can legally pay their workers per hour. 

The purpose of minimum wage is to ensure that employees are able to earn enough to cover the cost of the basic necessities of life, such as food and shelter. In theory, the minimum wage is meant to help curb poverty, generate incentives to work, and address any inequalities that may exist in the workforce.

Let’s go over the minimum wage in Newfoundland and Labrador, as well as any potential exceptions that may exist. 

Why Is The Minimum Wage Different Across Canada? 

The minimum wage is slightly different across the country, as each province and territory establishes its own minimum pay rate according to the cost of living in each respective location.

Minimum wages are established and adjusted on a regular basis in legislation based on the average wage rate in the province, inflation, and other economic factors.

Current Approach

In 1996, the Canada Labour Code was amended to ensure that the federal wage rate would keep up with provincial and territorial minimum wage rates. The current approach is found in section 178 of Part III of the Code and helps ensure that the federal rate maintains its relevance over time across the nation. 

Hourly Minimum Wage In Newfoundland And Labrador 2022 

From April 01, 2021 to September 30, 2021, the minimum wage for Newfoundland And Labrador will be $12.50 per hour. That’s an increase of 35 cents from the minimum wage in 2020 ($12.15).

From October 01, 2021, the minimum wage is set to increase to $12.75 per hour and will remain as such until March 31, 2022.

By April 1, 2022, and on April 1st every year following, the minimum wage rate will be adjusted by the percentage change in the Consumer Price Index (CPI) for the previous year and will be rounded up to the nearest $0.05.

Minimum wage rates are applicable to employees who are either paid by the hour, by the week, by the month or who are remunerated on a commission basis.

Looking for a job? Check out this list of documents you’ll need for your search

Federal Workers In Newfoundland And Labrador

If you’re a federal worker you can earn $15.55 per hour instead of $12.50 starting April 01, 2022. This is the minimum wage set for workers who are federally regulated by the government. This includes bank employees, postal service workers and federal Crown corporations.

How Has Newfoundland And Labrador Minimum Wage Changed Over The Years? 

The minimum wage has seen incremental increases over the years in Newfoundland and Labrador as follows:

Date Minimum Wage Was In EffectMinimum Wage Rate
October 1, 2021$12.75
April 1, 2021$12.50
October 1, 2020$12.15
April 1, 2020$11.65
April 1, 2019$11.40
April 1, 2018$11.15
October 1, 2017$11.00
April 1, 2017$10.75
October 1, 2016$10.50

Minimum Wage Overtime Pay In Newfoundland And Labrador

Overtime refers to the amount of time that an employee works over and above their normally scheduled working hours. Typically, overtime hours are paid at a higher rate than the hours worked within the scheduled workweek of 40 hours. Any hours worked in excess of 40 hours in a week will be paid at an overtime rate.

In Newfoundland and Labrador, the overtime rate is currently $18.75 per hour. As of October 1, 2021 and to March 31, 2022, the overtime wage rate will increase to $19.13 per hour. Then, effective April 1, 2022, and on April 1st every year following, the overtime wage rate will be set at a rate of 1.5 times the current minimum wage rate rounded up to the nearest $0.01.

There are exemptions to overtime. For instance, farm employees involved in the planting and harvesting of farm produce or who raise livestock are exempt from overtime. Further, live-in housekeepers or babysitters who have an arrangement with their employer in which they are entitled to time off with pay for hours worked in excess of 40 hours a week are also exempt.

Gig workers are also exempt from overtime – Learn more about the pros and cons of being a gig worker. 

Minimum Wage And Statutory Holidays In Newfoundland And Labrador

Employees are entitled to at least 6 paid public holidays each year under the Labour Standards Act, including the following days: 

  • New Year’s Day
  • Good Friday
  • Canada/Memorial Day
  • Labour Day
  • Remembrance Day
  • Christmas Day

If a public holiday falls on a day that an employee would usually not work — such as on a weekend — employers must provide a day off on the first working day right after the public holiday or on another day as agreed upon by both the employee and employer.

If the employee agrees to work on a paid public holiday, the employee has a couple of options:

  • The employee can be paid 2 times the pay rate of a normal working day
  • The employee may get a paid day off at full pay within 30 days of the holiday
  • The day can be added to the employee’s annual vacation

If an employee works on a public holiday but for fewer hours than a typical working day, the employer must pay the employee’s typical pay rate plus 1 additional day in wages.

There are some exemptions to this rule. For instance, employees who have been working for the employer less than 30 days before the holiday are not entitled to paid time off if they do not work on that holiday. Further, employees who have been absent from work for over 15 of the last 30 days are also exempt from paid time off on a holiday, unless they took sick leave, bereavement leave, annual leave, pregnancy leave, parental leave, or adoption leave.

FAQs About Minimum Wage in Newfoundland and Labrador

How is vacation pay calculated in Newfoundland and Labrador? 

Vacation pay in Newfoundland and Labrador is calculated as 4% of gross wages for employees who worked less than 15 consecutive years with the same company. For employees who have worked at least 15 years with the same employer, vacation pay is calculated as 6% of gross earnings.

Which province has the highest minimum wage rate in Canada? 

British Columbia is the province with the highest minimum wage, which is currently set at $15.20 per hour. However, the territory of Nunavut has the highest minimum wage rate across the entire country, at $16.00 per hour.

How are on-call employees paid? 

If an employee is called in for work, the employee can either work 3 hours or be paid for the full 3 hours. This provision doesn’t apply if the employee is already scheduled to work for less than 3 hours.

Can my employer deduct my wages for property damage? 

No, your employer cannot deduct any of your wages for things like property damage, nor can they make deductions for bad cheques, shortages, or uniforms.

How many hours must I work to be paid overtime wages? 

In Newfoundland and Labrador, the standard workweek is 40 hours. So, you’ll need to work in excess of 40 hours in a workweek to earn overtime wages. 

Final Thoughts

Every province and territory in Canada has established minimum wages. If you work in Newfoundland and Labrador, you are entitled to a wage rate of $12.75, which is set to be increased within the coming months. 

Rating of 5/5 based on 1 vote.

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

Click on the star to rate it!

How useful was this post?

Research & Compare

Canada's Loan Comparison Platform

Largest Lender Network In Canada

Save time and money with Loans Canada. Research and compare lenders before you apply. Share your experiences with Canada's top lenders.

Save With Loans Canada

Special Offers

You Could Win Up To $5,000

You Could Win Up To $5,000
Expires Soon

Borrow up to $50,000 from Fairstone and be automatically entered to win up to $5,000!*

View Offer
Earn 5% Cash Back With Neo

Earn 5% Cash Back With Neo
No annual fee!

Earn an average 5%¹ cash back at thousands of partners and at least 0.5%² cashback guaranteed.

View Offer
Build Credit With Refresh

Build Credit With Refresh

Build credit while spending money with the Refresh Financial VISA card.

View Offer
Build Credit For $10/Month

Build Credit For $10/Month

With KOHO’s prepaid card you can build a better credit score for just $10/month.

View Offer
Best Personal Loan Provider by Greedy Rates

Confidential & risk-free

All consultations and conversations with Loans Canada and its partners are confidential and risk-free. Speak with a trusted specialist today and see how we can help you achieve your financial goals faster. Loans Canada and its partners will never ask you for an upfront fee, deposit or insurance payments on a loan. Loans Canada is not a mortgage broker and does not arrange mortgage loans or any other type of financial service.

When you apply for a Loans Canada service, our website simply refers your request to qualified third party providers who can assist you with your search. Loans Canada may receive compensation from the offers shown on its website.

Only provide your information to trusted sources and be aware of online phishing scams and the risks associated with them, including identity theft and financial loss. Nothing on this website constitutes professional and/or financial advice.

Your data is protected and your connection is encrypted.

Loans Canada Services Are 100% Free. Disclaimer

Build Credit For Just $10/Month

With KOHO's prepaid card you can build a better credit score for just $10/month.