Could boost worker's annual salary by $1,355, says government
Ontario's minimum wage is set to rise to $17.20 per hour, effective Oct. 1, 2024, marking a 3.9% increase from the current rate.
The decision, based on the Ontario Consumer Price Index (CPI), aims to provide financial relief to workers amidst rising living costs.
"Our government is helping nearly one million workers earn more money for themselves and their families," said David Piccini, Minister of Labour, Immigration, Training and Skills Development.
With this increase, a worker on the general minimum wage, working 40 hours per week, stands to gain up to $1,355 annually. In 2023, roughly 935,600 workers earned at or below the new minimum wage of $17.20 per hour.
Minimum wage increase changes annually
Under the Employment Standards Act, Ontario's minimum wage increases annually based on the CPI, reflecting changes in consumer prices. The 3.9% rise corresponds to a 65-cent hourly increase to $17.20, positioning Ontario as the second-highest provincial rate in Canada, following British Columbia's $17.40 per hour.
“We are providing businesses with certainty and predictability by announcing this annual wage increase six months in advance, while also helping families offset the rising cost of living, so that Ontario continues to be the best place to live, work and raise a family,” said Piccini.
About 35% of workers earning at or below the current minimum wage operate in retail trade, while 24% are in accommodation and food services, said the provincial government
This adjustment aligns with the government's Working for Workers Four Act, 2024, which bolsters protections for Ontario's workforce, said the government. Notably, the Act strengthens wage protections for workers in sectors like restaurants and hospitality, ensuring employers cannot deduct wages due to a dine and dash incident. Additionally, it aids injured workers and pioneers the ban on Canadian work experience requirements in job postings, a first in Canada.
