Work in Canada
Ontario’s Minimum Wage Increases to $17.20 Per Hour
Ontario is set to raise its minimum wage to $17.20 per hour on October 1st this year, marking a 3.9% increase and positioning the province with the second-highest minimum wage in Canada.
According to David Piccini, Ontario’s Minister of Labour, Immigration, Training, and Skills Development, this initiative aims to benefit nearly one million workers by providing them with higher earnings to support themselves and their families. The decision reflects the government’s commitment to ensuring a fair and livable wage for all Ontarians while also fostering economic stability.
With the minimum wage hike, employees working 40 hours per week will witness an annual pay rise of up to $1,355, offering much-needed relief amidst rising living costs. In 2023, approximately 935,600 workers earned wages at or below the upcoming $17.20 threshold, with a significant portion being immigrants.
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Recent reports from Statistics Canada highlight the evolving occupational landscape in Canada, with immigrants increasingly occupying lower-skilled positions previously held by Canadian-born workers. This trend shows the important role immigrants play in filling labor gaps and contributing to Canada’s economic growth.
Under the Employment Standards Act, Ontario’s minimum wage undergoes annual adjustments based on the Ontario Consumer Price Index (CPI), reflecting changes in the cost of living. The 3.9% increase in the CPI translates to a raise of 65 cents per hour, resulting in the new $17.20 minimum wage.
Ontario’s decision to raise the minimum wage to ensure fair wages and improve the quality of life for its residents. The province’s new minimum wage rate will rank as the second-highest among Canadian provinces, trailing only British Columbia’s rate of $17.40 per hour.
Impact on Industries
Industries such as retail trade and accommodation and food services, which collectively employ 59% of workers earning the current general minimum wage, will be significantly impacted by the wage increase. This move is expected to provide financial relief to low-income earners while promoting economic stability and growth across various sectors. Overall, Ontario’s decision to raise the minimum wage aims to support workers, foster inclusive economic growth, and maintain its status as a desirable place to live and work in Canada.
