Minimum wage going up in Ontario this fall


Minimum wage earners in Ontario will be getting a slight increase in their take home pays come October as Ontario approves another hike to the minimum wage


Ontario is set for another minimum wage increase. The 25 cent per hour raise will take effect October 1, making it the second highest minimum wage in Canada.

The Ministry of Labour announced the increase on Mar. 19 following recommendations made last year by the Minimum Wage Advisory Panel to tie minimum wage increases to Statistics Canada’s Consumer Price Index. The changes were enacted through amendments to the Employment Standards Act.

Nunavut currently has the highest minimum wage rate in the country and is slated to rise to $12.50 per hour in June.

When the changes come into effect, it will be the 9th time that Ontario has raised the minimum wage since 2003. Those who work in agriculture, retail, hotels and tourism, and fast food will be most affected by the raise.

“Our government has taken politics out of minimum wage increases while ensuring wages for Ontario workers keep pace with inflation and businesses have time to prepare for payroll changes,” said Kevin Flynn, the Minister of Labour.

“This puts more money in people’s pockets, gives our businesses predictability and helps build a more prosperous economy, while ensuring a fair society for all.”

When the legislation was passed that tied minimum wage to the Consumer Price Index, the Canadian Federation of Independent Businesses said “many CFIB members will be negatively affected by this increase and will have no choice but to reduce hours and positions and to put a break on future hiring”.

“Instead of raising the minimum wage and putting an additional burden on small business payrolls, we called on the government to implement measures such as changes to the personal income tax system and incentives for informal, on-the-job training.”

When the rate goes up to $11.25 per hour, someone working 40 hours per week will take home $450 before taxes and other deductions, amounting to $10 extra per week, or a yearly salary of $23,400.

Under the current rate, someone earning $11 per hour takes home around $440 per week and $22,400 a year. The 25 cent increase means an extra $520 per year for the minimum wage earner.

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