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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.
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 2021
In Newfoundland and Labrador, the minimum wage currently sits at $12.50 per hour and will remain as such until September 30, 2021. That’s an increase from $12.15 in 2020. The minimum wage is set to increase as of October 1, 2021, 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.
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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:
|Year||Minimum Wage Rate|
|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, 202 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.
How is vacation pay calculated in Newfoundland and Labrador?
Which province has the highest minimum wage rate in Canada?
How are on-call employees paid?
Can my employer deduct my wages for property damage?
How many hours must I work to be paid overtime wages?
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.
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