Newfoundland And Labrador Minimum Wage 2021

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Newfoundland And Labrador Minimum Wage 2021

Written by Lisa Rennie
Fact-checked by Caitlin Wood

Newfoundland And Labrador Minimum Wage 2021

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Income Labrador Minimum Wage Newfoundland

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, 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 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:

YearMinimum 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.

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. 


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Lisa has been working as a writer for more than a decade, creating unique content that helps to educate Canadian consumers. She specializes in personal finance, mortgages, and real estate. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. She enjoys sharing her knowledge and experience in real estate and personal finance with others. In her spare time, Lisa enjoys trying funky new recipes, spending time with her dog, and of course, revelling in the joy of family.

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