Yukon's minimum wage going up to $12.71

Yukon's minimum wage is going up next month, by more than a dollar.

Starting April 1, it will be $12.71 per hour — up from the current $11.51.

The increase reflects the standard annual increase that's tied to the Consumer Price Index, plus an additional 90 cents.

The increase was recommended by the territory's Employment Standards Board. The board was asked by the government last year to review the minimum wage and make recommendations. 

In its report, the board recommended further increases in the next couple of years to bring the minimum wage above $15 by 2021.

That will still be well below what's considered a "living wage" in Yukon — calculated last year to be about $18.57 per hour. That's what an average family of four, consisting of two adults and two children, must make in order to meet basic needs including food, shelter, clothing, health care, and transportation. 

Community Service Minister John Streicker says the living wage is always different from the minimum wage. 

"Of course, the closer the minimum wage moves towards the living wage, then it will always help lower-income earners," he said.

Streicker also says that in a strong economy like Yukon's, where unemployment is low, raising the minimum wage can help a lot of people.

"Often what will happen is, when you raise your minimum wage, it pushes a lot of your lower wages up a bit," he said. "So that has an impact."

The Employment Standards Board's report said relatively few people in Yukon earn the minimum wage, or even $13 per hour — more earn between $13 and $15.

Those who earn less than $13 per hour tend to be younger workers between 15 and 34 years old, the report says.  

According to the Retail Council of Canada, Alberta has the highest minimum wage in Canada, at $15 an hour, followed by Ontario at $14.

Even after next month's increase, Yukon will still have the lowest minimum wage of the three territories.