NEWS RELEASE: Minimum Wage Increase Falls Short as Living Wage Gap Widens Across Newfoundland and Labrador 

For Immediate Release: 
Tuesday, March 31, 2026 

ST. JOHN’S, NL – Despite a scheduled 35-cent increase to the provincial minimum wage set for tomorrow, workers in Newfoundland and Labrador remain caught in a crisis of affordability, with data revealing that a minimum wage job is not enough to cover basic living expenses. While framed as a predictable approach, tying increases solely to the Consumer Price Index (CPI) falls short of what workers need to stay afloat.  

“A higher minimum wage is one of the most powerful tools we have to address affordability. It puts money directly into workers’ pockets through regular paycheques, respecting their dignity by ensuring their labour is fairly compensated,” said Newfoundland and Labrador Federation of Labour President Jessica McCormick. “While any increase is helpful, tying annual adjustments solely to the Consumer Price Index is fundamentally inadequate. It ensures that the minimum wage will never close the gap with a living wage. The longer government delays meaningful action, the more difficult closing that gap becomes.” 

In August 2025, the Canadian Centre for Policy Alternatives released its provincial living wage report for Newfoundland and Labrador. The report calculates the hourly wage needed to cover essential expenses across four regions, based on a family of two working adults and two children, incorporating all available tax credits and government benefits. 

The 2025 living wage rates were: 

·       Central Newfoundland: $24.40 

·       Eastern Newfoundland: $25.40 

·       Western Newfoundland: $24.40 

·       Labrador-Northern Peninsula: $28.30 

Even with tomorrow’s 35-cent increase, a minimum wage worker in the province will earn far below what is required to meet basic needs; a shortfall that forces impossible choices on low-wage workers and their families. Nearly one-quarter of Newfoundland and Labrador’s workforce earns less than $20 per hour. 

“The current path ensures that low-wage workers will be trapped indefinitely. They will never catch up,” said McCormick. “The government has chosen a mechanism that guarantees the minimum wage will remain a poverty wage. We need a policy that actively works to close the gap, not one that locks it in place.” 

The Federation of Labour is calling on the provincial government to move beyond inflationary adjustments and adopt a concrete plan to raise the minimum wage to a true living wage, ensuring that no worker in Newfoundland and Labrador is left behind. 

“Half-measures and policies designed to delay progress are no longer acceptable,” said McCormick. “Minimum wage workers cannot afford to wait any longer.” 

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