Ontario’s minimum wage earners will see a boost in their hourly pay starting October 1, 2025. The provincial government has announced that the minimum wage will rise to $17.60 per hour, up from the current rate of $17.20.
Key Points:
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New Minimum Wage: $17.60 per hour
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Effective Date: October 1, 2025
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Increase Percentage: 2.4%
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Basis for Increase: Ontario Consumer Price Index
This annual adjustment is part of Ontario’s policy to tie minimum wage increases to inflation, ensuring that wages keep pace with the rising cost of living. With this increase, Ontario will maintain its position as having the second-highest provincial minimum wage rate in Canada.
Labour Minister David Piccini emphasized the importance of this change, stating, “Workers and businesses deserve fair, balanced and predictable wages.”
Context:
While this increase is welcomed by many, it’s worth noting that advocacy groups like the Ontario Living Wage Network suggest that a living wage in the Greater Toronto Area is significantly higher, at $26 an hour. This highlights the ongoing debate about the gap between minimum wage and living wage in urban centers.
The annual inflationary adjustment to the minimum wage represents the government’s effort to balance the needs of workers with the concerns of businesses, providing a measure of predictability for both employers and employees in Ontario’s labor market.
