On October 1, 2022, the minimum wage in Newfoundland and Labrador will increase by 50 cents to $13.70 per hour. At present, the provincial minimum wage is $13.20 per hour.
What is minimum wage?
Minimum wage is the lowest wage an employer is required to pay their employees under the law. Employers may provide more wages and benefits than the minimum employment standards set in Newfoundland and Labrador’s Labour Standards Act (LSA), but they cannot offer less than the set minimum wage.
After October 1, 2022 ($13.70 per hour), the next expected minimum wage increase in Newfoundland and Labrador will be on April 1, 2023 ($14.50 per hour), followed by another increase on October 1, 2023 ($15.00 per hour).
What is the minimum overtime wage rate?
Currently, the minimum overtime wage rate is $19.80 per hour.
When should I pay my employees?
You are required to pay your staff at least twice a month. All salaries are to be paid within 7 days of the end of the pay period.
What deductions am I allowed to make from employee wages?
Employers may deduct the following:
- Overpayment of wages
- Income Tax
- Canadian Pension Plan contributions
- Employment Insurance contributions
- Deductions for a group benefit plan in which the worker participates
- Overpayment on unused portions of travel advances
- Savings plan deductions
- Lodging expenses when the employee occupies the employer’s premises
- Sums deducted or withheld by court order
If an employee damages my product, property, or has an outstanding payment, can I deduct these from their wages?
No. You cannot deduct these charges from the employee’s wages. You are advised to take alternate measures to retrieve the money owed.
Do I have to pay for employee uniforms?
Yes. If the uniform is unique to your business operation and carries your company logo, you cannot ask your employee to pay for it.
Do you have questions about the minimum wage in Newfoundland and Labrador?
Our experts can help you with any questions related to employee pay and assist you with any HR, health and safety or employment advice you may need.
As a trusted HR and health & safety consulting company, Peninsula serves over 5,000 small businesses across Canada. Peninsula’s clients receive ongoing updates of their workplace documentation and policies as legislation changes. They also benefit from 24/7 employer HR advice and are supported by legal assistance.
To learn more about how our services can benefit your business, call an expert today at 1 (833) 247-3652.