With inflation rising, the Ontario minimum wage increased to $17.20 on October 1st, 2024, per provincial legislation. However, annual increases are still not enough for many people to afford the actual cost of living in Ontario.
Another increase is scheduled for October 2025, and upcoming elections could change future minimum wage policies in Ontario. At the moment, it rises annually due to inflation.
Here’s how the minimum wage has increased in Ontario over the years and what Ontarians can expect in the future.
Key Takeaways
- The minimum wage increased to $17.20 per hour in Ontario on October 1st, 2024.
- The next change is scheduled for October 1st, 2025, and will increase the wage to $17.60 per hour.
- Minimum wage in Ontario does not align with living wage anywhere in the province.
- The federal minimum wage was increased on April 1, 2025, to $17.75 per hour.
Ontario minimum wage increase 2024
In October 2024, Ontario legally increased the provincial minimum wage to $17.20 from $16.55 per hour. There is another increase scheduled for October of 2025, which will bring the wage up to $17.60 per hour.
Each year, the provincial government typically shifts the minimum wage based on the Consumer Price Index (CPI) so that it keeps pace with the cost of goods. Changes are announced around April and go into effect in October.
Minimum wage applies to most, but not all, employees in Ontario. Notable exceptions include students, homeworkers, and wilderness guides.
Is inflation outpacing minimum wage?
Although minimum wage in Ontario is tied to the CPI (which is affected by inflation), many people – especially minimum wage earners – find that minimum wage is still not enough to live on.
In some areas of the province, inflation seems to be outpacing the minimum wage.
With the cost of goods and services rising, $17.20 per hour is not enough to afford the cost of living in cities like Toronto and Ottawa, where the estimated livable wage is closer to $26 or $23 per hour.
This is especially difficult for minimum wage workers, who earn the same set wage no matter which city they live in.
How does minimum wage measure up to the living wage in Ontario?
Ontario's minimum wage is $17.20 as of October 2024. This rate applies to most workers in the province, ensuring a basic legal standard for hourly earnings.
The average living wage in Ontario is $21.66. This is the income required to meet basic needs, such as housing, food, and transportation, based on local costs.
The gap is $4.46 per hour. For full-time workers, this difference can amount to over $700 monthly, leaving many unable to afford necessities.
Living wages vary across Ontario. In cities like Toronto or Ottawa, the required living wage may far exceed the provincial average due to regional disparities.
The minimum wage often falls short of covering the actual cost of living, according to research and advocacy groups like the Ontario Living Wage Network (OLWN).
The federal minimum wage in Canada is $17.75 per hour, but this only applies to federally regulated employees.
Minimum wage increases in Ontario 2009-2025
Ontario has had steady increases since the Stronger Workplaces for a Stronger Economy Act established annual minimum wage increases.
There have also been a couple of special increases since 2015, as you can see in this table:
| Date | General minimum wage |
|---|---|
| October 1st, 2024 | $17.20 |
| October 1st, 2023 | $16.55 |
| October 1st, 2022 | $15.50 |
| January 1st , 2022 | $15.00 |
| October 1st, 2021 | $14.35 |
| October 1st, 2020 | $14.25 |
| January 1st, 2018 | $14.00 |
| October 1st, 2017 | $11.60 |
| October 1st, 2016 | $11.40 |
| October 1st, 2015 | $11.25 |
In 2017, the Fair Workplaces, Better Jobs Act, 2017 increased the minimum wage to $14.00 from $11.60. It laid the groundwork for a raise to $15.00 in 2019, but in 2018, Ontario Premier Doug Ford froze the minimum wage. The next increase wouldn’t come until October 1st, 2020, and $15.00 was reached in early 2022.
What is the average salary in Ontario?
The average salary in Ontario is about $54,834 according to ZipRecruiter.
However, wages depend on your industry and location in Ontario. For instance, the average salary for a surgeon in Toronto is much higher than a financial manager in Waterloo. Some positions, like receptionists, typically earn a minimum wage across the entire province.
When will the next minimum wage increase be in Ontario?
Ontario workers can expect an increase on October 1st, 2025.
The Stronger Workplaces for a Stronger Economy Act of 2014 states that an annual increase will be indexed against inflation, based on the CPI from the previous 2 years.
It is also possible that a new government would amend or repeal this policy, or introduce a one-time act. An example of this is Bill 43, Build Ontario Act (Budget Measures), 2021, which increased the minimum wage from $14.35 to $15.00 per hour in 2022 and removed the special minimum wage for liquor servers.
For future announcements, Ontario residents can check the Ontario Ministry of Labour about possible changes to this policy.
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$25 GeniusCash + Delicious meal choices with fresh ingredients + Front-door delivery.Federal minimum wage increase
The federal minimum wage was increased to $17.75 on April 1, 2025. The federal minimum wage is looked at annually and adjusted based on the changes in Canada’s CPI.
This change will increase the minimum wage for workers in federally regulated private sectors, including these and others:
- Banks
- Postal services
- Air and road transportation
- Telecommunications (telephone, internet, etc.)
- Radio and TV broadcasting
If a province or territory’s minimum wage is higher than the federal minimum wage, these employees will receive the higher wage – so they’ll get the higher of the two wages no matter what.
FAQ
How much is the minimum wage in Ontario?
As of October 1st, 2024, the minimum wage in Ontario is $17.20 per hour. For students, it’s $16.20 per hour. Some types of workers are exempt or subject to different rules, such as federal workers and farm workers.
When will minimum wage increase in Ontario 2025?
The minimum wage in Ontario is scheduled to increase on October 1st, 2025, to $17.60 from $17.20. At the time of writing, there are no other minimum wage rate increases planned for 2025.
When is the next minimum wage increase in Ontario?
The next minimum wage increase is scheduled to take effect on October 1st, 2025, raising the rate to $17.60 per hour. However, an election is looming (at the time of writing) and things could change considerably.
When did minimum wage increase in Ontario?
The most recent Ontario minimum wage increase was on October 1st, 2024, and it brought the minimum wage to $17.20 from $16.50 per hour. This rate will go up to $17.60 in October 2025.
When did Ontario minimum wage increase to $14 per hour?
The Ontario minimum wage first reached $14 per hour on January 1st, 2018. This was a special increase set by the Fair Workplaces, Better Jobs Act. Currently, the minimum wage rate is $17.20 per hour.
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