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 wageand make recommendations.

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

That willstill be well below what's considered a "living wage" in Yukon calculated last yearto 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 saysthe 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, whereunemployment 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 workersbetween15 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 Ontarioat $14.

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