Ontario Minimum Wage Increase Effective October 1, 2024

On March 28, 2024, the Ontario government announced a significant increase to the province’s minimum wage, set to take effect on October 1, 2024. This change marks another step in the ongoing efforts to support workers and address the rising cost of living in the province.

Key Details of the Increase

• The general minimum wage will rise from $16.55 to $17.20 per hour.
• This represents a 3.9% increase, aligning with the Ontario Consumer Price Index (CPI).
• The new rate will make Ontario’s minimum wage the second-highest in Canada, just behind British Columbia’s $17.40 per hour.

Impact on Workers

The wage hike is expected to benefit nearly one million workers across Ontario. A full-time employee working 40 hours per week at minimum wage will see their annual income increase by up to $1,355. In 2023, there were 935,600 workers earning at or below $17.20 per hour, highlighting the significant impact of this change.

Sector-Specific Effects

The increase will particularly affect certain industries:

• 35% of workers at or below the new minimum wage are in retail trade.
• 24% are in accommodation and food services.

Other Minimum Wage Rates

Alongside the general minimum wage increase, other specialized minimum wage rates will also see adjustments:

• Student minimum wage: $16.20 per hour
• Homeworkers wage: $18.90 per hour
• Hunting, fishing, & wilderness guides minimum wage:
  • $86.00 per day (less than five consecutive hours in a day)
  • $172.05 per day (five or more hours in a day, whether or not the hours are consecutive)

Part of Broader Workers’ Rights Initiatives

This minimum wage increase is part of the government’s Working for Workers Four Act, 2024, which includes additional protections for workers such as:

• Strengthened wage protections for restaurant, hospitality, and service workers
• Enhanced support for injured workers
• A ban on Canadian work experience requirements in job postings

Historical Context

Looking back at the past 15 years, Ontario’s minimum wage has seen various increases:

• 2009-2010: Increased from $9.50 to $10.25
• 2014-2017: Gradual increases from $11.00 to $11.60
• 2018: A significant jump to $14.00
• 2019: Scheduled increase to $15.00 was cancelled due to government change
• 2020-2024: Steady increases leading to the current $17.20

Future Adjustments

The Ontario government has established a system for potential annual minimum wage increases:

• Increases may occur every October 1st
• New rates are to be announced on or before April 1st of each year
• Adjustments are based on the Ontario Consumer Price Index

This systematic approach aims to provide businesses with certainty and predictability while helping workers keep pace with the cost of living.

As Ontario continues to navigate economic challenges and labor market dynamics, this minimum wage increase represents a significant step in the government’s efforts to support workers and maintain the province’s status as a desirable place to live and work.