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NUNAVUT - At $10 an hour, Nunavut's minimum wage is now the highest in Canada.

In June, the legislative assembly approved an increase of $1.50 based on the increases in the cost of living throughout the territory.

Before the new rate took effect Sept. 5, the territory's minimum wage had been at $8.50 since 2003.

"This step will provide economic support to our lowest wage earners and ensure that Nunavut workers are able to share in our growing economy," said Premier Paul Okalik in a news release last month.

But those who have been vocal on anti-poverty issues in Nunavut say the new minimum wage does not account for the true cost of living in the North.

"If you're relying on $10 per hour, it wouldn't come close to helping a person support themselves or their family," said Cambridge Bay MLA Keith Peterson. "(It) wouldn't be sufficient, not with the cost of living going up so steeply, and with fuel and the impact it has on food prices and rent and all the other bare essentials that it takes to live in Nunavut."

According to an Indian and Northern Affairs 2006-2007 price survey a nutritious diet for a family of four for one week would cost between $350 and $450 in the most isolated Northern communities. By comparison, the same basket would cost $195 to $225 in southern Canada.

"If we're trying to encourage people to eat healthier, unfortunately, if you look at the shelf, the healthier stuff is more expensive," said Elisapee Sheutiapik, Iqaluit's mayor and a local business owner. "So on that note, I think ($10) isn't (high enough), but at least it's a start."

Peterson has urged the Nunavut government to develop an anti-poverty strategy that would address all the factors involved.

"I think that the bigger issue is the whole poverty situation in Nunavut, which we have to address as a government and communities and the federal government as well," he said. "You can imagine if it's an issue down south, where the cost of living is significantly lower, you multiply that two or three, four times in Nunavut and you really see the urgency of a poverty strategy."