Ontario’s minimum wage will become 2nd highest in Canada after increase

Ontario’s minimum wage is set to rise next month, making it the second highest among Canadian provinces, according to the government.

On October 1, the minimum wage will increase to $17.20 per hour, a 3.9% rise from the current $16.55 per hour, the province announced. Under the Employment Standards Act, the minimum wage in Ontario adjusts annually based on inflation rates in the province.

Ontario Labour Minister David Piccini first revealed the increase in March, stating it was meant to provide businesses with “certainty and predictability” by announcing the change in advance.

The government noted that a worker earning the general minimum wage and working 40 hours a week would see an annual pay increase of about $1,355. In 2023, 935,600 workers were earning at or below the new rate of $17.20 per hour.

Once the new wage comes into effect, Ontario will have the second highest minimum wage rate in Canada, trailing only British Columbia’s $17.40 per hour.

The Ontario Living Wage Network, which includes employers, employees, non-profits, and researchers, reported in 2023 that the living wage in southwest Ontario was at least $18.65 per hour. This figure varies across the province, with the highest living wage found in the Greater Toronto Area at $25.05 per hour.

Premier Doug Ford’s Progressive Conservative government scrapped a planned minimum wage increase from $14 to $15 when they took office in 2018. However, in January 2022, they raised it to $15 per hour and linked future increases to inflation.