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Nunavut's Minimum Wage Hits $20.17 — First in Canada Above $20, Effective September 1, 2026

Nunavut and the Northwest Territories both raised their minimum wage on September 1, 2026. We ran the new rates through the CanPay Insights tax engine to see what they are actually worth after tax.

By Travis Zhang6 min read
Nunavut's Minimum Wage Hits $20.17 — First in Canada Above $20, Effective September 1, 2026

Quick Answer

Nunavut's minimum wage rose from $19.75 to $20.17 an hour on September 1, 2026 — the first minimum wage in Canada to pass $20, and now more than $2.00 above the federal minimum wage of $18.15. The Northwest Territories raised its own minimum wage the same day, from $16.95 to $17.20 an hour. Run through the CanPay Insights tax engine, a full-time (2,080 hours/year) Nunavut minimum-wage worker gains about $662 a year in take-home pay from the raise, and a full-time NWT worker gains about $385.

Canada's first $20-an-hour minimum wage

Nunavut's general minimum wage rose from $19.75 to $20.17 an hour on September 1, 2026 — a 42-cent increase (about 2.1%) that makes it the first minimum wage anywhere in Canada to pass $20. The Government of Nunavut announced the new rate on June 30, 2026, calculated under the territory's annual formula, which combines the change in the Consumer Price Index for Iqaluit and Nunavut with the change in the territory's average hourly wage over the previous year.

The Northwest Territories raised its own minimum wage the same day, from $16.95 to $17.20 an hour — a 25-cent increase (about 1.5%), confirmed by the Government of the Northwest Territories and reported by CBC News. It is the fourth consecutive year the GNWT has used its current CPI-and-average-hourly-wage formula.

We ran both new rates through the CanPay Insights tax engine (2026 federal and territorial brackets, CPP, and EI) to see exactly what they are worth after tax.

The rates, in one table

Old rateNew rate (Sept 1, 2026)ChangeFormula basis
Nunavut$19.75/hr$20.17/hr+$0.42 (+2.1%)Iqaluit/Nunavut CPI + average hourly wage
Northwest Territories$16.95/hr$17.20/hr+$0.25 (+1.5%)NWT CPI + average hourly wage

What it's actually worth after tax

Full-time hours (40/week, 2,080/year), 2026 federal and territorial tax rates, CPP, EI, and basic personal amounts only:

TerritoryRateGross pay/yearTake-home pay/yearTake-home/monthExtra vs. old rate
Nunavut$19.75/hr (old)$41,080$34,393$2,866
Nunavut$20.17/hr (new)$41,954$35,055$2,921+$662/yr
NWT$16.95/hr (old)$35,256$29,643$2,470
NWT$17.20/hr (new)$35,776$30,028$2,502+$385/yr

Calculated by CanPay Insights using the 2026 tax engine for a single worker with no other income or credits, paid biweekly (26 pay periods).

A minimum-wage worker keeps roughly 76 cents of every extra dollar in Nunavut ($662 of the $874 gross raise) and about 74 cents on the dollar in NWT ($385 of the $520 gross raise) — the rest goes to federal tax, territorial tax, CPP, and EI.

Where Nunavut and NWT now rank nationally

Nunavut was already Canada's highest minimum wage before this increase; it now pulls further ahead. NWT's raise doesn't change its rank, but it widens the gap behind it:

RankProvince/territoryMinimum wageTake-home/year
1Nunavut$20.17$35,055
2Yukon$18.51$31,846
3British Columbia$18.25$31,536
4Ontario$17.60$30,179
5Northwest Territories$17.20$30,028

Yukon, BC, and Ontario rates are unchanged as of this writing. Ontario rises to $17.95 on October 1, 2026. For the full 13-jurisdiction ranking, see our minimum wage take-home pay study.

Nunavut's $20.17 is now $1.66 above Yukon's $18.51 (the next-highest in Canada), $1.92 above BC's $18.25, and more than $2.00 above the federal minimum wage of $18.15 that applies to federally regulated employers. NWT, at $17.20, has closed to within $151 a year of Ontario's take-home pay despite a wage rate 40 cents lower — a reminder that low territorial income tax, not just the hourly rate, drives take-home pay in the North.

A busy fall for minimum wage across Canada

Nunavut and NWT's September 1 increases are the first of several this fall. Five more provinces raise their minimum wage on October 1, 2026: Ontario, Nova Scotia, Prince Edward Island, and Manitoba, plus Saskatchewan. Between September 1 and October 1, seven of Canada's 13 provinces and territories will have raised their minimum wage.

See your own numbers

These figures assume a single worker with no other income or credits. Check your own paycheque with the free Nunavut paycheck calculator or Northwest Territories paycheck calculator, read the Nunavut take-home pay guide or Northwest Territories take-home pay guide, or compare either territory against every other province with compare provinces.

Sources & disclaimer

Rate and effective-date figures are based on the Government of Nunavut's June 30, 2026 announcement and the Government of the Northwest Territories' announcement, cross-checked against CBC News and Bloomberg Tax coverage of both increases. Take-home pay figures are calculated with the CanPay Insights tax engine using 2026 federal and territorial tax rates, full-time hours (2,080/year), a single worker, and basic personal amounts only — real paycheques vary with credits, benefits, and actual hours worked. This is general information, not tax advice.

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Frequently Asked Questions

What is Nunavut's new minimum wage as of September 2026?
$20.17 an hour, up from $19.75, effective September 1, 2026 — a 42-cent increase of about 2.1%. It is set under Nunavut's annual indexation formula, which factors in the change in the Consumer Price Index for Iqaluit and Nunavut's average hourly wage over the previous year, and it makes Nunavut the first jurisdiction in Canada to pass $20 an hour in minimum wage.
What is the Northwest Territories' new minimum wage?
$17.20 an hour, up from $16.95, also effective September 1, 2026 — a 25-cent increase of about 1.5%. The GNWT has used the same CPI-and-average-hourly-wage indexation formula for four consecutive years running.
Is Nunavut now the highest minimum wage in Canada?
Yes, by a wide margin. Nunavut's $20.17 is $1.66 above Yukon's $18.51 (the second-highest in Canada) and $1.92 above British Columbia's $18.25. It is also the first provincial or territorial minimum wage anywhere in Canada to cross the $20 mark.
How much extra take-home pay does the raise actually mean?
Run through the CanPay Insights tax engine for a full-time worker (2,080 hours/year, single, basic personal amounts only): a Nunavut minimum-wage worker's take-home pay rises from about $34,393 to $35,055 a year — a gain of roughly $662, or about $25 more per biweekly paycheque. An NWT minimum-wage worker's take-home pay rises from about $29,643 to $30,028 — a gain of roughly $385 a year, or about $15 more per paycheque.
How are Nunavut and NWT minimum wages set?
Both territories use an annual formula rather than a one-off political decision: Nunavut combines the change in the Consumer Price Index for Iqaluit and Nunavut with the change in the territory's average hourly wage; the Northwest Territories does the same with its own CPI and average hourly wage figures. Both reviews land on September 1 each year.
Are other provinces raising their minimum wage this fall too?
Yes — five provinces raise minimum wage on October 1, 2026: [Ontario, Nova Scotia, Prince Edward Island, and Manitoba](/blog/minimum-wage-increases-october-2026), plus [Saskatchewan](/blog/saskatchewan-minimum-wage-october-2026). Combined with Nunavut and NWT's September 1 increases, seven of Canada's 13 provinces and territories will have raised their minimum wage within a single six-week window this fall.

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Disclaimer: This content is based on publicly available information and general tax knowledge for reference only. Individual tax situations may vary. Please consult a qualified tax professional or accountant for personalized advice.

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