Thank you, Mr. Speaker.
Wage Top-Up
Committee appreciates the work of the Department of Finance to increase support to low-income workers during the COVID-19 pandemic. The GNWT made it possible for businesses to increase wages for employees 15 years and older earning less than $18 per hour through a temporary wage top-up. NWT minimum wage legislation states that employers must pay workers a minimum of $13.46 per hour. In contrast to the minimum wage, living wage is what full-time workers must earn to afford basic living expenses, based as closely as possible on the actual cost of goods and services within their community. In this way, community living wage rates can be an indicator of affordability.
In 2019, Alternatives North released living wage estimates for Yellowknife, Inuvik, and Hay River. All three communities came in at more than $23 an hour. A living wage is what it takes for a household to cover its basic expenses without severe financial stress. The calculation is based on a household with two full-time working adults and two young children. It accounts for government benefits and deductions, such as the Canada Child Benefit and income taxes. It doesn't factor in things like debt payments, home ownership, saving for children's future education, or the costs associated with caring for a disabled or elderly family member.
In the NWT there are approximately 2,999 households who report they had difficulties paying for living expenses, including transportation, housing, food, clothing, and other necessary expenses. Committee believes a wage top-up program can assist with economic recovery by supporting service-sector workers providing key programs and services to continue to employ NWT residents.
Recommendation 6
Committee recommends the GNWT continue to offer the wage top-up as a permanent program to businesses, providing financial assistance to NWT workers aged 15 or over and earning less than $18 per hour.
Mr. Speaker, I would like to turn it over to the Member for Kam Lake.