Ontario’s minimum wage has increased – here’s what you need to know

Ontario’s minimum wage has increased by 40 cents, and Ontarians have mixed feelings. 

As of October 1, the province’s minimum wage has gone from $17.20 to $17.60, an increase of 2.4 per cent.

As a result of the increase, people who work 40 hours a week making minimum wage will see their annual pay increase more than $800. 

The minimum wage goes up every year based on the Ontario Consumer Price Index, which is used to measure changes in prices experienced by consumers. It measures price changes by doing a time-based comparison of certain food items, such as beef, pork, chicken, dairy products, eggs, bakery items, and fresh fruit.

In addition to the general minimum wage, specialized minimum wages for students, homeworkers, hunting and fishing guides are also increasing. You can find the full list of minimum wages in Ontario here.

According to the province, approximately 36 per cent of people in the province making $17.60 or less work in retail, while 23 per cent are in the accommodation and food industry.

This latest increase, the third in the last seven years, marks a $3.60 increase from the 2018 minimum of $14/hour.

The increase brings Ontario’s minimum wage to the second highest provincial rate in Canada, behind only British Columbia, where the minimum wage is $17.85/hour.

Following the raise, people in the province have taken to social media to share their thoughts. Some people are in support of the change.

“A small step up for workers, but still tough to keep up with costs,” one X user posted.

And other people feel it’s not enough.

“Great! It will take me 89 years to pay for a house instead of 102 years,” one Redditor joked.

“Not enough. Anyone working deserves a living wage, full stop. In 2024 it was between $19-$26/hr depending on where in Ontario you lived,” another shared.

The comment is based on numbers from the Ontario Living Wage Network, an organization that calculates how much people need to earn in order to live comfortably. In 2024, the living wage for the Greater Toronto Area was $26/hour.

While some are concerned about how the raise will affect the cost of living in the province.

“STOP increasing the minimum wage, it’s killing our economy. This is why a fast food meal deal is almost 20 bucks. Grocery prices are skyrocketing. STOP IT. Doug Ford has destroyed Ontario,” one X user said.

“Then every business in Ontario increases the prices of the stuff they sell,” another commented.

But the Better Way Alliance (BWA), a network of Canadian business owners, say that these concerns are unfounded. In fact, the network says that the province’s minimum wage hike of $2.40/hour back in 2018 actually led to GDP growth without any net job losses.  

The BWA says that by increasing the wages of their staff, companies are making a strategic move that will increase productivity, staff loyalty, and excellent customer service.    

“With tariffs and supply chain shocks hitting us, the smartest investment is in our workforce. We can’t control global markets, but we can control how we treat people,” Liliana Locke, Knowledge Director, Better Way Alliance said in a statement.

“Higher wages make our teams stronger and more adaptable.”