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Canada

Canada: Ontario to Increase Minimum Wage to $16.55 per Hour

Author: Cassandra Ma

On March 31, 2023, the Ontario Government announced its plan to increase the minimum wage rates under the Employment Standards Act, 2000. Effective October 1, 2023, the following minimum wage rates will apply to provincially regulated employers in Ontario:

Employee Class Current Minimum Wage Rate Minimum Wage Rate Effective October 2023
Employees who are students under 18 years of age, if the student’s weekly hours do not exceed 28 hours or if the student is employed during a holiday $14.60 per hour $15.60 per hour
Hunting, fishing, and wilderness guides $77.60 per day, when working less than five consecutive hours in a day

$155.25 per day, when working five or more hours in a day

$82.85 per day, when working less than five consecutive hours in a day

$165.75 per day, when working five or more hours in a day

Employees who are homeworkers $17.05 per hour $18.20 per hour
Any other employees (i.e., the general minimum wage rate) $15.50 per hour $16.55 per hour

The new minimum wage rates represent a 6.8% increase to Ontario’s current statutory minimum wage rates. This adjustment reflects the rising cost of living across the country and recent increases to the provincial inflation rate.

Check the Box

Provincially regulated employers in Ontario should begin reviewing their existing employment contracts and collective agreements, and taking steps to ensure that employees’ pay rates will be legally compliant when the statutory minimum wage rates increase in October. Prudent and proactive employers may also consider setting up their payroll systems in advance of October 1, 2023, to ensure that any necessary changes to compensation are processed immediately when the new minimum wage rates take effect.