Newfoundland and Labrador’s minimum wage will increase by 35 cents to $12.50 per hour as of April 1, 2021. The minimum overtime wage rate will continue to be 1.5 times the minimum wage.
Please note that as per the Labour Standards Regulations, the minimum wage applies to:
- an employee, whether paid on the basis of an hourly rate of pay or on the basis of a fixed wage for a week or a month or a part of a month; and
- an employee, whether remunerated either wholly or in part on a commission basis.
April 1 falls in the middle of the pay period, can I wait until the next pay period to start paying the new minimum wage?
No. The new minimum wage comes into effect on April 1, 2021. Any hours worked on that date and after must be paid at a minimum of $12.50 per hour.
Example: The pay period is March 28 to April 10, 2021. The employee works 8 hours a day, Monday to Friday, and is paid at minimum wage.
Rate from March 28 to March 31: $12.15
Rate from April 1: $12.50
Do I have to increase the salaries of my employees who currently earn more than the minimum wage?
No. The law requires that you pay at least the minimum wage to all employees; beyond that, wage increases are at your discretion.
If you have further questions, you can contact your CFIB Business Counsellor at 1-888-234-2232 or by e-mail at [email protected]
Print Article
Share this Article
